The registered investment advisor (RIA) industry opened 2025 with historic momentum, recording 75 mergers and acquisitions in the first quarter – the most active Q1 on record and the third most active of all time, according to DeVoe & Company’s latest RIA Deal Book. This figure represents a 15% increase over the same period in 2024, itself a record-setting year with 272 transactions.
The uptick builds on a six-month surge in M&A activity that began in late 2024, supported by a more stable stock market and falling interest rates. Private equity-backed consolidators played a major role, accounting for over half of all acquisitions.
“Following the most active year and quarter on record, 2025 picked up right where 2024 left off, breaking records,” said David DeVoe, DeVoe & Company’s founder. “We’re seeing yet another record-setting quarter to kick off the year.”
A significant trend shaping the current M&A landscape is the alignment of goals between buyers and sellers: both now cite growth as their top priority. Among sellers, 65% identified growth as the primary driver for entering a transaction, surpassing liquidity (55%) and succession (49%). On the buy-side, 85% listed growth as their chief motive—up from just 49% in 2022.
Larger sellers drove much of the first quarter’s volume. Transactions involving firms managing between $1 billion and $5 billion in assets under management (AUM) surged, comprising 33% of all deals. According to the report, this increase lifted the average seller AUM to a record $1.2 billion, a marked rise from $819 million two years earlier. Meanwhile, mega-sellers (over $5 billion AUM) remained relatively inactive, contributing only 8% of transactions.
Mid-sized RIAs also gained ground, accounting for 23% of transactions – a rebound from a 2023 low. In contrast, small sellers (with $100 million to $500 million AUM) continued their downward trend, now comprising just over a third of total deal volume.
Consolidators, after a pause driven by earlier high interest rates, reclaimed dominance in the buyer category. Their market share jumped to 51%, widening the gap with RIA buyers, who saw their share slip to 33% despite steady transaction numbers. The “Other” buyer category, which includes banks and private equity firms, dropped to a 16% share.
Wealth Enhancement Group led all acquirers with six deals in Q1 2025, continuing its multi-year streak as the industry’s most active buyer. CW Advisors and Merit Financial Advisors followed with four transactions each.
While the start of 2025 suggests a continuing robust deal environment, DeVoe cautions that macroeconomic uncertainty—including inflation, tariffs, and stock market volatility—may shape future quarters.
“While several industry forces are poised to drive increased M&A activity, the current geopolitical climate makes near-term forecasts uncertain,” the report noted.
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