The RIA mergers-and-acquisitions market got off to a rollicking start this year, with a record 75 transactions announced in the first quarter, DeVoe & Co. reported this week.
That total surpassed the previous first-quarter record of 68 transactions set in 2022 and was 10 deals ahead of last year’s opening quarter.
In 2024, there were 272 transactions, the highest annual total ever recorded, DeVoe & Co. said. In the fourth quarter alone, 78 deals were announced.
“RIA M&A is red hot right now,” David DeVoe, the firm’s founder and CEO, said in a statement. “Recent research shows that growth is the #1 driver for sellers, which seems counterintuitive. However, more firms are giving up on organic growth and are turning to those that have seemingly solved the organic growth puzzle.”
DeVoe & Co.’s annual RIA M&A outlook report showed that growth is the leading reason that RIA leaders are choosing to sell externally, followed by liquidity and succession planning. The annual report noted that advisors are increasingly motivated by the opportunity to join larger firms that offer scale, advanced technology and robust operational support.
On the buy-side, private equity and private equity-backed acquirers remain dominant, accounting for 72% of all transactions. As interest rates began to decline in late 2024, capital became more accessible, further fueling a favorable environment for dealmaking.
The RIA M&A market is off to a strong start in 2025, potentially setting the stage for another record year, DeVoe & Co. said.
DeVoe & Co. limits its RIA M&A tracking to transactions of $100 million or more to optimize the statistical accuracy of its reporting and screen out the SEC-registered hedge funds, independent broker-dealers, mutual fund companies and other companies that do not operate as traditional RIA firms. It also excludes the “advisors joining RIAs” category except in the event of important developments.
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