Large, pure-play wealth managers are increasingly driving M&A activity in the retirement plan space, a trend that emerged in 2020 and accelerated in 2021, according to ECHELON Partners’ 2021 RIA M&A Deal Report. Last year, 17 transactions involved retirement plan advisors or platforms with $1 billion or more in assets, a 143% increase over 2020. Cross-selling opportunities between private client wealth management and retirement plan services, especially in the DC market, are fueling interest from the largest buyers, including HUB International Limited, OneDigital, and Empower, which acquired Prudential Financial’s retirement plan business for $3.55 billion.

With Creative Planning and other firms signaling similar deals, the market expects continued consolidation. Overall, 2021 set record highs with 307 wealth management transactions, 145 deals above $1 billion in AUM, and total assets acquired reaching $576 billion. Strategic acquirers backed by private equity were responsible for nearly 70% of deals…