Wealth management M&A activity is expected to remain robust in 2022, fueled by low financing costs and record levels of private equity capital, according to Echelon Partners. After a record-breaking 2021, which saw 307 deals—nearly 50% more than 2020—$576 billion in client assets changed hands, including 145 transactions involving firms with over $1 billion in assets. Major deals included Wells Fargo’s $603 billion sale of its asset management unit to Reverence Capital and GTCR, Ascensus’ merger with The Newport Group, and Prudential Retirement’s sale to Empower Retirement.
Strategic and financial acquirers set new records, with financial buyers dominating large deals. Banks remained the least active, while RIAs accounted for only 23% of transactions. Echelon expects continued consolidation, cross-selling opportunities between retirement and wealth services, overseas expansion, and strong interest in WealthTech, citing JPMorgan’s $12 billion technology investment as a sign that technology-driven deals will be a key driver this year…