Volume Of North American Wealth Management M&A Drops In Q2

Tom Burroughes

11 July 2023

While wealth management firms’ mergers continue, their volume fell in the second quarter of 2023 from the first, according to data from California-based ECHELON Partners.

There were 65 transactions announced compared with 75 in Q1, the investment bank, strategist and consultant to wealth managers, said.

As owners of RIAs and other firms near retirement and want to sell, or merge with partners to capture efficiencies in a more regulated world, this has helped drive M&A in the space. Recent rises to interest rates cooled the pace of deals last year, but activity overall remains relatively robust.

Private equity houses remain important players in the space.

CI Private Wealth sold a 20 per cent stake to a consortium of investors, Stone Point Capital invested $250 million in Wealth Enhancement Group, and Leonard Green & Partners made a minority investment in Hub International.

There was a significant increase in large RIA investments compared with the first quarter. Some 36 transactions involving targets with more than $1.0 billion in assets under management were reported, rising 9 per cent – an increase from the 33 transactions reported in the first quarter.

The wealthtech space is busy. There were 30 transactions in the second quarter. Deals included Mariner Wealth Advisor's acquisition of Spring and Altruist’s $112 million capital raise led by Insight Partners.