Mergers and acquisitions activity among registered investment advisors remains strong, even as deal sizes slow compared with 2021, according to the latest Echelon Partners RIA M&A report. Through mid-2022, a record 181 deals have closed, signaling continued momentum in the wealth management M&A market. Smaller acquisitions are becoming more common, with average assets under management transacted dropping below $2 billion, while private equity-backed RIAs and consolidators lead deal volume.
Notable transactions include Cerity Partners’ recapitalization by Genstar Capital and Morningstar’s acquisition of SMArtX Advisory Solutions, highlighting the growing convergence between wealth management and WealthTech. Banks, TAMPs, and strategic acquirers remain active participants, with cross-border acquisitions increasing as competition intensifies in the U.S. market. Despite a slight slowdown from 2021, firm valuations remain stable, and M&A activity in wealth management continues to offer growth opportunities, especially for firms leveraging scale, technology, and strategic acquisitions…