The average assets per deal in the wealth management space is expected to land around $1.6 billion in 2025, according to estimates by Echelon Partners. And while that surpasses the 2024 average of $1.4 billion, it falls short of historical levels in 2020-2023.
“Given recent political uncertainty and resulting market turbulence, many acquirers, particularly financial sponsors, are expected to remain cautious on outsized transactions, which could limit the pace of mega deals,” Echelon stated in its RIA M&A Deal Report for the first quarter of 2025.
That buyer caution will keep deals below the $2 billion average of 2021.
In addition, the average deal size involving direct investments by private equity buyers saw a notable decline from $4.9 billion in 2024 to $2.8 billion in the first quarter 2025, Echelon stated.
That said, buyers are still targeting larger RIAs, with the average deal size increasing from $2.7 billion in the fourth quarter of 2024 to $2.9 billion in the first quarter of 2025.
Overall, wealth management M&A had a strong start to the year, with 118 total transactions in the first quarter across $805 billion in total assets transacted, the most active first quarter and the second most active quarter on record. That compares to 125 deals reported in the fourth quarter.
Despite the tariff concerns and broader economic uncertainty, the RIA M&A market was resilient. Echelon expects 2025 to be the most active year in dealmaking history, with 370 deals projected. That would surpass 2024’s deal volume of 336.
Some of the notable deals in the first quarter included LPL’s acquisition of Commonwealth Financial Network, Mariner’s purchase of Cardinal Investment Advisors, an institutional consultant with $292 billion in assets, Merchant’s deal with $20 billion Summit Financial, and Rise Growth’s acquisition of Grimes & Company, a $5.7 billion RIA.