Deals in the wealth management space are not only increasing in frequency—they’re getting larger. In 2021, the average seller’s assets under management (AUM) topped $2 billion for the first time, according to Echelon Partners’ 2021 RIA M&A Deal Report. Of 307 deals last year, 145 involved sellers with over $1 billion in AUM, an 85.9% increase from 2020. Large RIAs offer steadier revenues, higher margins, and reliable cash flows, making them attractive targets for strategic acquirers and financial buyers alike.
Firms such as Focus Financial Partners, Mercer Advisors, Wealth Enhancement Group, and CI Financial completed 15 or more transactions in 2021, often selling minority stakes to private equity partners like KKR, Onex Group, Leonard Green & Partners, and Warburg Pincus. Private equity backing accounted for nearly 68% of all deals, fueling competitive valuations and deal structures. With $576 billion in assets changing hands, 2021 marked the ninth consecutive record year for RIA M&A activity…