Wealth management M&A reached record-breaking levels in 2021, with consolidation accelerating at an unprecedented pace driven by the growing influence of private equity and a booming wealthtech sector. According to Echelon Partners’ latest research, deal volume surged to 307 transactions in 2021 — a nearly 50% increase over the 205 deals recorded in 2020 — marking another historic milestone for the industry.
The scale of deals also expanded dramatically, with 145 acquisitions involving firms managing more than $1 billion in assets, nearly double the previous record of 78 set in 2020. In total, $576 billion worth of advisory assets changed hands during the year, with the average seller surpassing $2 billion in AUM for the first time ever. Private equity played a central role throughout, directly or indirectly involved in over two-thirds of all deal activity, with 38 direct PE investments in wealth management — up from 23 in 2020 and just 11 in 2019. And with wealthtech emerging as the next frontier for PE-backed consolidation, the forces reshaping the wealth management industry show no signs of slowing…