Solid start to wealth management deals in 2024: report

Solid start to wealth management deals in 2024: report
"We’re seeing continued deal flow of mid-sized and smaller RIAs, along with broker-dealers, too," one banker said.
APR 22, 2024

The first three month of 2024 were the second best start to the year on record for wealth management firms in regard to deal making and transactions, according to a new report from Echelon Partners, a boutique investment bank focused on mergers and succession planning in the wealth and investment management industries.

In the first quarter of the year, there were 90 announced transactions, according to Echelon, representing a 20% increase over the same period last year, when 75 deals were announced. The first quarter of 2024 was the second most active first quarter on record, according to Echelon's tally.

The rest of the year should continue to see a busy M&A market, according to the report. The wealth management industry is on track to announce a total of 330 deals in 2024, a moderate increase from the 321 transactions announced last year, according to Echelon's RIA M&A deal report, which the bank publishes quarterly.

The mergers and acquisition market for RIAs and wealth management firms has been booming for almost a decade and red hot since COVID 19, as both well-established buyers and newer aggregators began duking it out to buy firms. Even the spike in interest rates and record highs for stocks, both of which make acquisitions costlier, have not dampened the demand to buy registered investment advisors and broker-dealers.

"Regarding the frequency of deals, I don’t see that slowing down," said Peter Nesvold, partner at Republic Capital Group. "As long as we have a reasonably sound economy, we'll see the march upward of both size of the firms, with billions in assets, along with the frequency of mergers and acquisitions."

"We’re seeing continued deal flow of mid-sized and smaller RIAs, along with broker-dealers, too," said Larry Roth, managing partner at RLR Strategic Partners. "I think 2024 is going to be another good year for M&A."

Leading wealth management firms had a big impact in the first quarter, according to Echelon.

"While RIAs continue to dominate the overall wealth management buyer population makeup, this quarter’s largest transactions included a diverse group featuring RIAs, private equity firms, broker dealers, asset managers, and insurance companies," according to the report.

"LPL Financial announced the largest deal of the quarter, acquiring $100 billion in assets Atria Wealth Solutions in February," Echelon noted. "Other notable large transactions include Mariner’s acquisition of $90 billion in assets AndCo Consulting and Focus Financial Partners’ acquisition of management’s stake in $30 billion in assets SCS Financial."

Meanwhile, Echelon expects a slight uptick in transaction value and volume this year.

In the first quarter of the year, the average assets per deal maintained an upward trajectory, hitting $1.8 billion in assets, a slight increase from the $1.7 billion recorded in 2023, according to Echelon.

The investment bank projects that the average assets per deal for 2024 maintain above $1.8 billion in assets, signaling a modest rise compared to both 2023 and the first three months of this year's figures.

Hightower CEO talks private equity and M&A in the RIA industry

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.