RIA M&A hits all-time high in October Surprise

RIA M&A hits all-time high in October Surprise
Devoe's latest tracking of deal activity for the month shows 39 record-breaking transactions, including four-fifths that featured private equity.
NOV 06, 2024

October was a record-breaking month for M&A among RIAs, with 39 transactions completed – the highest monthly count recorded by DeVoe & Company.

That tally surpassed the previous record of 33 deals in January 2021 and marked a significant increase from the 21 deals in October 2023, according to the leading consultancy firm.

By November 1, the total transaction count for the year reached 232, representing a 12 percent increase from the 208 deals completed by the same time in 2023.

DeVoe & Company’s RIA Deal Book tracks transactions involving RIAs with at least $100 million in assets under management. Excluding non-traditional RIA deals, such as those involving hedge funds or mutual fund companies,

“Although one shouldn’t read too much into a single month of data, the surge in October’s RIA M&A activity is a conspicuous spike following nearly three years of unremarkable activity,” David DeVoe, founder and CEO of DeVoe & Company, said in a statement revealing the findings.

Since early 2021, quarterly transaction counts have stayed within a range of approximately 65 deals, according to Devoe. But with declining interest rates on the menu, he said PE-backed buyers seem to be starting down a path of accelerated M&A that the firm recently predicted they would.

"It seems evident that these organizations were accelerating their activity in anticipation of the long-awaited rate cuts,” DeVoe said, adding that declining borrowing costs could increase confidence among PE-backed firms.

In Devoe & Co.'s October count, 83 percent of deals were executed by private equity firms or PE-backed companies, marking a substantial departure from the historical trend of about 70 percent. 

Nearly half of October’s transactions involved consolidators – firms that grow by acquiring other companies – who play a prominent role in the RIA M&A ecosystem. Leading consolidators Beacon Pointe, Cerity Partners, and Waverly Advisors each completed three acquisitions in the month, an achievement DeVoe described as rare within the industry.

The report indicated that lower capital costs could drive consolidators and private equity buyers to increase their acquisition activity, further reshaping the RIA landscape.

Latest News

Advisors seek transparency on DIY investing as Robinhood faces investigation
Advisors seek transparency on DIY investing as Robinhood faces investigation

'I feel like they have created an addictive gaming culture, which is not healthy for investing.'

Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?
Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

Should RIAs brace for a pullback in deal valuations?
Should RIAs brace for a pullback in deal valuations?

Eric Leeper of FP Transitions offers fresh perspective on M&A deals, why buyers are getting more discerning, and how would-be sellers can boost their practice value.

Is your wealth manager still 'buying the dip'?
Is your wealth manager still 'buying the dip'?

'Buying the dip' has been a winning investing strategy for over a decade. Financial advisors weigh in on whether it will continue to work.

Wealth Enhancement, Alphacore ink new RIA partnerships
Wealth Enhancement, Alphacore ink new RIA partnerships

Wealth Enhancement is tapping into new markets nationwide as AlphaCore accelerates plans to form one of California's largest RIAs.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve