Wealth Management M&A Hits Record High, Fidelity Reports
Registered investment advisors reported 132 acquisitions in the first half of 2025.
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What’s the dealio?
The first half of this year may have left clients’ heads spinning from tariffs and geopolitical uncertainty, but it didn’t slow dealmaking. In fact, the number of acquisitions accelerated, with deals among RIAs hitting a record high of 132, covering nearly $183 billion in purchased client assets, according to Fidelity. That’s 25% more transactions than the same period last year, though purchased assets fell 54%.
It’s the strongest start to a year since Fidelity began tracking in 2015, and the industry’s aging advisor base remains a key driver. “Talent always bubbles up to the top of conversations we have with leaders of strategic acquirer firms, and finding great talent in a desired geographic area is even more of a win,” said Laura Delaney McElroy, vice president of business consulting at Fidelity
Jump In, Water’s Fine
The buyer pool is widening, with 16 first-time acquirers in the six months through June. Only one of their deals was in-state, showing most are looking beyond local markets. “More firms are seeking to expand their product offering to meet increased client demand, tap into talent and grow their firms beyond what they could natively achieve within their four walls,” McElroy told Advisor Upside.
Over the past 12 months, just 20 acquiring firms accounted for 60% of deals and 41% of purchased assets, the report found:
- Focus Partners Wealth led the cohort with 16 purchases totalling $54 billion in assets, followed by Merit Financial Advisors with 13 acquisitions totaling $4.7 billion in assets.
- Wealth Enhancement and Mercer Advisors each made 11 deals, totalling $11.4 billion and $7.6 billion in purchased assets, respectively.
All of the firms were backed by private equity groups, and PE was behind 86% of H1 transactions and 91% of purchased assets.
More, More, More. RIA transactions are on track to surpass the 233-deal record set in 2024. Looking ahead, Fidelity notes there may be supply and demand setbacks as there are more buyers than sellers right now. However, there’s still plenty of potential for even more deals in the future. “As an industry, we’re young, highly fragmented, and we’re well behind other mature industries,” McElroy said. “There are more RIA firms formed each year than are being acquired — a replenishment effect.”
