The flow of major RIA deals slowed in early 2022, according to Fidelity’s latest wealth management M&A report. While the number of announced RIA transactions rose 22% in January and February compared to last year, total assets under management changing hands dropped 11%. Billion-dollar acquisitions remain rare, with just 11 deals over $1 billion announced so far, down sharply from 85 in the same period in 2021.
Experts attribute the slowdown to market volatility, concerns over capital gains tax changes, and the end of a long period of low-cost capital. Several firms that executed multiple $1 billion deals last year, including CI Financial and Hightower, have been relatively inactive. Despite these delays, RIA M&A activity is expected to remain strong throughout 2022 as buyer appetite persists. Market turbulence may slow closings but won’t eliminate deal flow entirely…