How Wealth Management M&A Played Out in 2025

The median acquired RIA size decreased slightly last year to $597 million from $609 million in 2024.

Deal activity involving RIAs with $500 million under management or less increased to 44% of transactions from 42% in 2024. The share of deal activity involving RIAs with more than $1 billion in AUM decreased from 38% in 2024 to 35% in 2025.

Strategic acquisitions accounted for 85% of deal activity, while financings, minority investments and recapitalizations accounted for 15%.

M&A Activity Drivers

Demographics remain one of the biggest forces behind deal activity, the report said. It cited Cerulli Associates estimates that advisors 55 and older make up 42% of the industry but oversee nearly 60% of client assets.

As advisors approach retirement age, internal successions have become more difficult to bring about. RIA valuations have shot up in recent years, leaving many younger advisors without the capital or the willingness to buy at current prices, even with an internal transaction discount.

For a growing number of firms, selling to an external buyer has become the most practical path forward.

Client expectations are further fueling consolidation, according to the report. As portfolio management become more commoditized, clients want tighter coordination across their financial lives, including deeper expertise in estate planning, trust services and tax planning, as well as digital capabilities.

But smaller firms often lack the scale to deliver a heightened client experience on their own. Rising compliance requirements, cybersecurity demands and technology costs intensify the pressure.

Larger platforms can spread those expenses across broader client bases, making scale a more practical option for many advisors.

Adjacent Acquisitions

In 2025, platforms continued to push beyond traditional RIA acquisitions and bought adjacent capabilities, including trust companies, investment consulting firms, retirement plan consultants and outsourced chief investment officer providers.

The report noted that such deals broaden offerings, diversify revenue and strengthen the ability to serve institutional and private wealth clients under one roof.

In parallel, RIAs also accelerated their move into tax services, buying CPA firms or acquiring RIAs with in-house CPA arms, thus bringing tax planning and preparation closer to the advisory relationship.

Buyer Landscape

Private equity-backed RIA platforms were again the most active buyers in 2025, accounting for about 86% of strategic acquisitions. That is a percentage point higher than in 2024 and continues the long-term trend.

Seven in 10 strategic acquisitions in 2021 involved sponsor-backed buyers, according to the report. New sponsors continue to enter the space, it said, drawn to the sector's predictable fee revenue, sticky client bases, scalable business models and a fragmented landscape ripe for consolidation.

Last year, repeat acquirers led deal activity, executing established growth strategies supported by mature sourcing networks and experienced M&A and integration teams.

First-time buyers are also entering the market with new capital backing, according to the report, although most have been selective and less active than seasoned platforms. Some strategic buyers without financial sponsor backing participated opportunistically in 2025 but represented a smaller share of overall transactions.

Deal Structure

While cash was the leading form of consideration across most transactions in 2025, use of equity consideration increased. Growth-oriented sellers frequently reinvested a portion of proceeds into buyer equity, often 15% to 30% of upfront consideration, to remain aligned with the buyer and participate in future upside.

Transactions driven primarily by advisor retirement needs tended to rely more heavily on cash, according to the report.

Among the 53 financings, minority investments and recapitalizations, the year included 12 recapitalizations among scaled platforms with at least $10 billion under management. These financial sponsor transitions and institutional partnerships highlighted the maturation of consolidation leaders as they move beyond middle-market capital partners.

Berkshire Global Advisors said the current pace of consolidation reflects long-running structural shifts, not short-term market trends. It said these dynamics point to a market with no clear endpoint to elevated M&A activity, making consolidation a permanent feature of wealth management rather than a passing cycle.

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