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October 19, 2017 at 05:12 AM
Investment bank Echelon Partners says merger and acquisition activity in the RIA industry is on pace for a 23% year-over-year increase in 2017, based on activity through Sept. 30. That would make it a fifth straight recodord-setting year for deals, according to Echelon Partners.
The third-quarter Echelon RIA M&A Deal Report found that 302 advisors had moved out of the wirehouses so far this year, with 88 more expected to leave in the fourth quarter.
Plus, the average size of these breakaway moves is expanding: It has risen 7% from last year to $300 million in client assets per advisor, with 15 breakaways involving advisors with $1 billion or more in assets through the third quarter, according to Echelon.
The group also sees wirehouse advisors continuing to break away to form or join RIAs due to lower recruiting bonuses that have resulted from the Labor Department fiduciary rule.
