There were 90 wealth management merger and acquisition deals valued at $570 billion announced during the first quarter of 2024, representing a 20% increase compared to the same period last year, according to ECHELON Partners’ 1Q24 RIA M&A Deal Report, released today.
That makes it the second most active first quarter on record. The report also notes that strategic acquirers—including RIAs and broker-dealers—continue to play a dominant role in the wealth management M&A landscape, accounting for 86% of transactions in the first three months of the year.
These strategic acquirers (and their financial backers) are deploying substantial capital toward M&A, underscoring the industry’s ongoing focus on consolidation and realizing synergies.
Private equity was involved in 69% of transactions in 1Q24, contributing to over $200 billion in assets transacted.
LPL Financial’s $100 billion deal announced in February to acquire Atria Wealth Solutions and its 2,400 advisors was the largest deal of the quarter. LPL expects to close the transaction in the second half of 2024, and the conversion is expected to be completed in mid-2025, subject to receipt of regulatory approval and other conditions.
Other notable large transactions cited in the report include Kansas City-based RIA firm Mariner Wealth Advisors’ acquisition of $90 billion AndCo Consulting and Focus Financial Partners’ acquisition of management’s stake in $30 billion SCS Financial.
Notable minority transactions include Constellation Wealth Capital’s direct investments in Lido Advisors and their separate investment in Perigon Wealth Management. The quarter also saw several notable majority investments by private equity firms including Flexpoint Ford’s acquisition of the $80 billion AUM Public Trust Advisors.
While overall activity from January through March was down from Q4 2023, the report notes that the last quarter of a year is often the most active quarter for deal announcements. Still, the report attributes the high level of activity to the culmination of pending deals from 2023. “This sets the stage for a year of robust M&A activity, helped by recent strong market performance and a stabilizing interest rate outlook,” the report states.
ECHELON forecasts that 330 total deals are expected in 2024 involving an RIA as the buyer or seller. “Overall transaction count is likely to show a year-over-year increase and we also expect average assets per deal to substantially surpass last year’s level.”
Read the complete report here.
SEE ALSO:
• LPL Financial Acquiring Atria Wealth Solutions
• Victory Capital Adds Amundi US Under Strategic Partnership
• Modern Wealth Launches Retirement Plan Advisory Biz with Deal for $1.2B N.Y. Firm Beltz Ianni