RIA merger and acquisition activity has reached unprecedented heights in 2025, with the third quarter closing at 94 transactions – the highest quarterly total ever recorded, according to the latest DeVoe & Company RIA Deal Book.
This surge continues a string of robust quarters that began in late 2024, positioning the industry to surpass the once-unthinkable threshold of 300 transactions by year-end.
The momentum began in the fourth quarter of 2024, when deal activity climbed to 81 transactions, then carried through to 2025 with each quarter exceeding previous records. The first quarter opened with 75 transactions, followed by 73 in the second quarter, before the third quarter’s record-setting pace.
DeVoe sees a cocktail of factors driving the acceleration, including lower capital costs after the Federal Reserve’s interest rate cuts and heightened motivation among both buyers and sellers.
“RIA M&A is on fire. The activity has been redlining for four quarters,” said David DeVoe, founder and chief executive of DeVoe & Company. “2025 is set to break a new record and is on track to exceed 300 transactions.”
The seller landscape is evolving, with mid-sized RIAs – those managing between $501 million and $1 billion in assets – emerging as a key force. This group has already surpassed its 2024 total with 59 transactions year-to-date, representing 24% of all sellers, a 10 percentage point increase from last year.
Devoe notes that these firms are at a pivotal stage, often weighing the decision to invest in professional management and succession planning or to sell and join a larger platform.
Small sellers, those with $100 million to $500 million in assets, have seen their market share fall to 36%, down from 50% two years ago. Meanwhile, large sellers – those with $1 billion to $5 billion in assets – continue to attract significant buyer interest, accounting for 27% of transactions so far this year.
After several years of retreat, consolidators have reclaimed their standing as leading buyers in the RIA M&A space. Their share of transactions has climbed to 49% year-to-date, up from 39% at the same point in 2024.
Consolidators have completed 118 acquisitions so far in 2025, matching their full-year total from last year and approaching their all-time record. At the same time, acquisitive independent RIAs have seen their influence ebb, now representing 28% of transactions, compared to 38% a year ago.
A significant undercurrent in this year's M&A landscape for RIAs is the rise of sub-acquisitions – transactions where firms that have already been acquired pursue acquisitions of their own. Year-to-date, 75 sub-acquisitions have been announced, already matching last year’s full-year record and representing 31% of all RIA M&A activity.
Devoe reads this as a sign of a maturing ecosystem, with “yesterday’s seller becomes today’s buyer, armed with fresh capital, infrastructure and M&A expertise from its parent platform.”
Minority transactions are also on the rise, accounting for 14% of all activity for the year through the third quarter, a notable rebound from a low of 8% last year. The Devoe report highlighted how minority investors, often private equity groups or specialized RIA investment platforms, provide liquidity while allowing firm leaders to retain majority control.
Private equity continues to play a significant role at the top end of the market, with many of the largest transactions involving PE-backed consolidators. The report cites Madison Dearborn Partners’ $2.7 billion equity investment in Aon’s NFP wealth management business as an example of the scale and complexity of today’s mega deals.
The concentration of market power among top acquirers is intensifying. The top 10 buyers have as a whole executed 82 transactions so far this year, representing about 35% of all RIA M&A activity. Expanding to the top 20 buyers, these firms account for more than half of the 242 deals completed year-to-date.
"Market power continues to gain concentration at the top, but the buyer field is also deepening and intensifying," the Devoe report says. "For sellers, the challenge is not just finding a buyer but finding the right buyer."
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