Financial advisory firms aren't expanding just for growth's sake but instead aim to grow more sophisticated by adding specialized services through mergers and acquisitions, according to a new report from Fidelity.
This dynamic marks the second phase in the RIA industry's three-chapter M&A progression, with "adjacency acquisitions such as tax planning, CPA capabilities, and ultra-high-net-worth services ... becoming increasingly prominent as firms work to build comprehensive fiduciary platforms," the report said.
"RIAs are shifting from a narrow focus on AUM acquisition to a more strategic view of M&A as a tool for expanding and diversifying their service models," Fidelity said.
Mariner has made numerous "adjacent practice acquisitions" over the years, and CEO Marty Bicknell told Fidelity that "front-line needs" drive its strategy. He noted last year's acquisition of Woodbridge International, a boutique investment bank, enabling Mariner to provide in-house succession planning for business owners.
Fidelity's findings align with a recent McKinsey & Co. prediction that some wirehouses, mega-RIAs and other large platforms will grow, through deals, to offer a holistic array of services for clients in all wealth segments.
Overall, 2025 set a record for RIA M&A activity, with 276 completed transactions totaling more than $796 billion in purchased assets, compared with the previous year's 233 transactions and nearly $670 billion in acquired assets, Fidelity reported. Annual purchased assets exceeded $750 billion for the first time, a 19% increase over the prior year and more than double the 2023 level.
The M&A market for broker-dealers is quieter than the RIA marketplace, Fidelity said, explaining that the number of broker-dealers continues to decline.
Mariner's Bicknell told Fidelity that an RIA mega-merger is increasingly likely in the near future, fueled by private equity interest and the industry's push toward larger fiduciary platforms. While there's no RIA that qualifies as a large firm now, there will be, he predicted.
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