Registered investment advisory (RIA) firms announced 86 M&A transactions during the first quarter of 2025, which while a 14-deal (14%) decline from Q4 2024, it was a 31.1% increase in deal volume compared to Q1 2024 and the second most active quarter on record behind only Q4 2024, according to ECHELON Partners’ 1Q25 RIA M&A Deal Report, released today.
“ECHELON expects 2025 to be the most active year in dealmaking history.”
1Q25 RIA M&A Deal Report
While those 86 transactions represented 73.7% of total deal volume in the report, the total transacted assets increased by 7.6%, suggesting a greater focus on larger firms. The report cites $805 billion in total 1Q25 assets transacted over 118 total announced transactions.
The report provides a detailed look into ECHELON’s analysis of the most important trends impacting U.S. wealth management M&A transactions and capital raises. ECHELON projects 370 deals in 2025, which would far surpass 2024’s 336 deals and also best 2022, which had the most deals ever with 341.
“Given the industry’s resilience during 1Q25, ECHELON expects 2025 to be the most active year in dealmaking history,” the report states.
Notable deals in Q1 2025 included LPL Financial’s acquisition of Commonwealth Financial Network—the largest independently owned wealth management firm in the U.S.—for $2.7 billion. Another was Mariner Wealth Advisors’ acquisition of the $292 billion AUA institutional consultant Cardinal Investment Advisors that will become part of Mariner Institutional, which Mariner founded in early 2024 via other large acquisitions.
Other key trends in the new report include:
• Financial buyers pursue large deals: Private equity and other financial sponsors announced 15 deals, just one shy of the 16 recorded in 4Q24. Despite the number of “mega-deals” decreasing between 1Q25 and 4Q24, total transacted assets by PE firms still increased from $34.3 BN in 4Q24 to $56 BN in 1Q25.
• WealthTECH deal activity holds steady: In 1Q25, investors announced 35+ transactions, consistent with levels recorded from 2Q24-4Q24, demonstrating continued interest through capital raises, minority investments, and add-on acquisitions.
• 2025 kicks off with a record-breaking first quarter for wealth management M&A: Amid the S&P 500’s 4.6% decline in 1Q25—the index’s worst quarterly performance since 3Q22—driven by renewed tariff concerns and broader economic uncertainty, the wealth management M&A market remained remarkably resilient, with 118 announced transactions making it the most active first quarter and second most active quarter on record. 1Q25’s activity fell just seven deals short of 4Q24’s all-time high of 125 announced transactions.
Manhattan Beach, Calif.-based ECHELON Partners is a boutique investment bank focused on M&A and succession planning for the wealth and investment management industries. Check out the complete ECHELON Partners’ 1Q25 RIA M&A Deal Report here.
Another recent Q1 2025 M&A report from DeVoe & Company reported a total of 75 transactions in the first quarter of the year, exceeding its previous Q1 record of 68 deals in 2022 and marking it as the strongest and most active quarter in the industry.
SEE ALSO:
• RIA M&A Sees Record-Breaking Activity in Q1 2025
• LPL Financial Buys Commonwealth in $2.7B Deal
• Mariner Buys $292B Cardinal Investment Advisors
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.