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Industry Spotlight > Mergers and Acquisitions

RIA Deals Surged to Near Record in Q1: Echelon

By Michael S. Fischer

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RIA dealmaking started 2024 at a rapid pace, with 90 announced transactions for a year-over-year increase of 20%, according to Echelon Partners’ first-quarter RIA M&A Deal Report. This was the second most active first quarter on record, the report said.

Strategic acquirers accounted for 85.6% of first-quarter transactions. Of the 77 deals these buyers announced, 64.9% involved firms with private equity backing. 

RIAs remain the dominant strategic acquirer subcategory. Firms announced 62 transactions in the first quarter and maintained a majority share representing 69% of deals announced so far this year. 

The subcategory saw a 13.1% increase in total assets transacted, while at the same time announcing nine fewer deals than in the fourth quarter. This trend highlights strategic buyers’ continued emphasis on larger deals as well as recent strong equity market performance, Echelon said. 

Financial acquirers announced 13 deals in the first quarter, representing an 85.7% increase over the fourth-quarter count. These transactions involved $225 billion in assets, a big comedown from the $1.1 trillion transacted in the previous quarter. Echelon ascribed the decrease to several large RIAs that received private equity investments in the fourth quarter.

Private equity acquirers in the first quarter made direct investments in wealth managers with assets totaling $201 billion. The subcategory announced 12 transactions, representing a 71.4% increase over the previous quarter.

Notable minority transactions included Constellation Wealth Capital’s direct investment of $19.1 billion in Lido Advisors and its separate $6.5 billion investment in Perigon Wealth Management. 

The quarter also saw notable majority investments by private equity firms, including Flexpoint Ford’s acquisition of Public Trust Advisors with $80 billion in assets under management.

Wealthtech continues to attract many firms that are looking to service the growing wealth management market. In the first quarter, there were 13 transactions, seven fewer deals announced than in the previous quarter, but with a diversity of acquirers ranging from private equity to fintech platforms to venture capital. 

Deal activity, too, persisted in its diversification, featuring transactions spanning marketing, portfolio management, compliance and other areas.

Michael S. Fischer

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