RIA mergers hit new Q3 high as PE drives dealmaking

RIA mergers and acquisitions reached unprecedented levels in the third quarter of 2025, surpassing the previous quarterly high set at the end of last year, according to new data from DeVoe & Company.

As per a Wednesday data release from the firm, RIA buyers and sellers logged a total of 94 transactions over the past three months, compared to 81 in the fourth quarter of 2024.

The most recent surge in activity – which included 32 deals in July, 25 in August, and 37 in September – signals continued momentum in a market that has defied expectations amid ongoing economic uncertainty.

The latest figures put the industry on track for a record year, with 242 deals announced through the first three quarters – just shy of 2024’s full-year total of 272.

The Q3 2025 record also far exceeds third-quarter deal tallies over the past half-decade. By Devoe's count, Q3 deal activity previously ranged from just 34 transactions in 2019 to 68 in 2022.

If the current pace holds, the industry could see more than 300 transactions by year-end, according to the firms latest data release.

“Quarter after quarter, RIA M&A continues to heat up,” said David DeVoe, founder and chief executive of DeVoe & Company.

He noted that private equity-backed consolidators are responsible for the majority of transactions, fueling what he described as a “growing surge of activity.” 

Consolidators – serial acquirers with M&A at the core of their business models – accounted for 53% of all acquisitions in the second quarter, according to DeVoe’s Q2 Deal Book. Many of these consolidators are backed by private equity, which continues to play a decisive role in industry consolidation.

DeVoe’s research found that 79% of RIA M&A activity is driven directly or indirectly by private equity firms, and 77% of major acquirers reported their acquisition pipelines have grown since the start of the year. More than half (54%) expect their deal volume to increase in the coming months, with 85% anticipating valuations will remain steady despite market volatility.

"With Q3 setting a record, 2025 is on pace to surpass all previous annual totals,” DeVoe said.

The most recent full quarterly snapshot by Devoe showed mid-sized and large sellers accounting for two-thirds of all transactions. That has pushed the average deal target’s assets under management close to the record highs seen in 2021.

Firms managing between $501 million and $5 billion in assets have become increasingly prominent, while smaller sellers – those with $100 million to $500 million –saw their share of deals decline to a new low of 34% by mid-year 2025, according to DeVoe’s second-quarter report.

According to the most recent 2025 industry snapshot by the Investment Adviser Association, 10.2% of SEC-registered RIAs had under $100 million in AUM, while 58.3% had between $100 million and $1 billion in assets managed.