Wealth Administration M&A Exercise Stays Robust


Regardless of difficult markets and rising prices of capital, July M&A exercise amongst registered funding advisors and impartial broker-dealers continued the speedy 2022 momentum.

In accordance with the newest Wealth Administration M&A Transactions report from Constancy Institutional, 13 RIA offers in July M&A totaled $20.7 billion and a $5 billion broker-dealer buy by LPL.

Total, there have been a complete of 131 RIA transactions by July at $180.8 billion, up 36% in comparison with year-over-year totals and a 16% improve in AUM from 2021. As well as, there have been three broker-dealer offers totaling $63 billion in AUM thus far this 12 months.

Offers price $1 billion or extra additionally remained excessive, with 5 extra to this point in July, the report stated. Amongst them had been the neighborhood bank-focused $7.9 billion acquisition of Mariner Wealth Advisors Heber Fugger Vendeen Funding Advisors, CAPTRUST’s $4.1 billion buy of Frontier Wealth Administration, and Pathstone’s $3.5 billion acquisition of Dyson Capital Advisors.

Six of July’s 13 RIA transactions concerned offers with lower than $300 million in AUM, as 2022 exercise stays sturdy on this phase of RIA, which is essentially a vendor’s market, Constancy notes. Scott Slater, M&A Specialist and Constancy Institutional Vice President of Follow Administration & Consulting, stated, “Whereas greater than $1 billion of offers remained excessive, a big 2022 improve in sub-$500 million transactions led to a rise in complete transactions.”

‚ÄúRegardless of these difficult markets and rising value of capital, main RIA consumers have indicated they want to construct scale, high customer-facing {and professional} expertise, and improve service capabilities and expertise platforms with their long-range methods. Dedicated to,” Slater continues.

The M&A offers lined in Constancy’s report seeks to seize:

  • Wealth administration agency registered as an RIA with the SEC, together with transactions recognized with greater than $100 million in belongings below administration/recommendation, however lower than $30 billion;
  • Particular person advisors and/or advisory groups becoming a member of a wealth administration RIA aside from a monetary establishment and who’re anticipated to herald a minimum of $100 million in AUM to the brand new enterprise; And
  • Unbiased broker-dealer agency registered with FINRA, with transactions involving greater than $1 billion in AUA.

Whereas this report primarily targeted on the July acquisitions, a number of vital offers have already taken place in August, together with the acquisition of Wealthplan Advisors by Hub, the acquisition of Edelman’s Good Investor, and the merger of MGO Funding Advisors and One Seven. .



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