RIAs struck a record 148 M&A deals in the first half, a record for the January-to-June period and a 17% increase over the same period in 2024, DeVoe & Co. reported this week.
The first quarter delivered 75 mergers and acquisitions, followed by a record-breaking 73 in the second.
The first-half performance came against a backdrop of volatile equity markets, shifting interest rate expectations, inflationary headwinds and extreme geopolitical events — conditions under which RIA M&A activity typically slows, DeVoe & Co. said.
RIA M&A is not adhering to the standard script, it noted, and has now recorded three consecutive quarters of 70 or more transactions.
Consolidators Extend Their Lead
Consolidators — serial acquirers with acquisition-led business models — started the year with renewed momentum after a steady slowdown in their activity since 2021. In the second quarter, they accounted for 53% of all transactions, just short of their previous peak in 2021.
Consolidators completed 79 transactions in the first half, a 41% year-over-year increase. With stronger capital positions and reinvigorated pipelines, these buyers are back in action, DeVoe & Co. said.
Consolidators’ acquisition activity came at the expense of acquisitive RIAs, whose business models continue to resonate with sellers that prioritize culture and founders with a seat at the table, but whose momentum as buyers has slowed.
In the first half, RIA acquirers completed 40 transactions, four fewer than a year ago. Yet their market share has fallen from 36% in 2024 to 27% in the second quarter of 2025.
DeVoe & Co. reported that the “other” category of acquirers — private equity firms, banks, insurance platforms, wirehouses and any other acquirer besides an RIA or consolidator — accounted for 20% of transactions in the first half of 2025, far below the category’s 2020 peak of 28%.
More Pipelines, Steady Valuations
Top consolidators report expanding pipelines, strong appetite and stable valuations — signs of continued confidence heading into the second half.
Some three-quarters of acquirers surveyed by DeVoe & Co. reported that their acquisition pipelines have increased since the beginning of 2025, while 23% said they are holding steady. Private equity, which directly or indirectly drives most activity in the RIA space, is encouraging these consolidators to move quickly, and their leadership teams are responding accordingly.
Fifty-four percent of respondents said they expect their acquisition activity to increase over the next six months, while 46% anticipate maintaining their current pace.
DeVoe & Co. said these findings suggest that consolidators expect acceleration, and are not particularly concerned that the current backdrop will slow the wave of sellers open to negotiation.
Some consolidators, it said, are finding the environment to win deals more competitive, and are expanding their pipelines to get the same number of closed deals. Seventy-seven percent reported that their pipelines are bigger, but only 54% expected their deal volume to be higher.
Despite declining interest rates, 85% of surveyed leaders said they expect valuations to hold steady in the near term, while half of the remaining expect a slight increase and the other half aa modest decline. DeVoe & Co. noted that competitive dynamics, seller expectations and private equity capital are helping to maintain consistent pricing.
Midsize and Large Sellers Step Up
In first half, a shift in the composition of sellers drove the record-breaking M&A activity, DeVoe & Co. found. The average assets under management per seller has risen by 30% since 2022, to $1.1 billion, near the record high set in 2021.
This shift reflects a multi-year trend of midsize and large sellers driving more transaction activity, while smaller sellers, those managing between $100 million and $500 million, gradually lose ground. In the first half, the latter accounted for just 34% of transactions, a new low. Despite this drop, they still represent the largest group by transaction count.
Midsize sellers, firms with $501 million to $1 billion in assets under management, are experiencing a resurgence, DeVoe & Co. said. This segment now accounts for 26% of all transactions for the year to date, up from 17% in 2024 and well above the 2023 low of 14%.
With 38 transactions in the first half of 2025, just eight short of 2024’s full-year total, midsize sellers are on pace for their strongest year on record.
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