The Evolution of Wealth Advisory M&A: 2025 Momentum and Market Shifts

The pace of mergers and acquisitions in the U.S. wealth advisory sector shows no signs of slowing in 2025. Through the end of April, 119 deals have been publicly announced—representing a 10% increase over the same period in 2024. Behind these numbers is a clear and continued trend: private capital-backed firms remain the driving force behind the consolidation of wealth and retirement advisory services, establishing themselves as long-term players with ambitions that stretch far beyond traditional roll-ups.

As deal volume continues to outpace last year’s activity, and with sustained interest from both strategic and financial buyers, DOXA maintains a confident outlook for the remainder of the year. But while deal counts are one measure of momentum, the real story of 2025 lies in how the motivations and mechanics of these deals are evolving.

From Succession Planning to Strategic Scalability

Historically, wealth management M&A was largely succession-driven. Aging founders sought exit strategies, and acquirers provided continuity. But that narrative is rapidly being rewritten.

Today’s market is characterized by a deliberate pivot toward growth, platform scalability, and strategic alignment. Sellers are no longer simply looking to cash out—they’re increasingly focused on finding partners who bring the infrastructure, capital, and vision necessary to take their firm to the next level.

Private capital, once seen as opportunistic, is now a cornerstone of this transformation. It has brought structure, repeatable processes, and long-term thinking into the space. With that has come a heightened focus on value creation: integration strategies, operational alignment, and cultural compatibility are now just as important as headline valuations. This shift is influencing both buyers and sellers to adopt a more rigorous and intentional approach to dealmaking.

Market Breakdown: Private Capital’s Dominant Role

Of the 119 announced deals in 2025 as of April, 83—or roughly 70%—were driven by private capital-backed firms. This figure is nearly identical to 2024’s ratio, signaling not just consistency, but entrenchment. These buyers continue to refine their playbooks, leveraging capital not only to acquire but to invest in talent, technology, and client experience post-close.

Independent firms—those not backed by institutional capital—also saw a slight increase in share, accounting for 28 transactions (23.5%) compared to 21.0% in 2024. This suggests that while scale remains a significant advantage, there’s still space for nimble, founder-led firms to compete—particularly when they bring strong organic growth or serve niche client segments.

Meanwhile, insurance brokerages completed nine acquisitions of wealth or retirement advisory firms during the same period. These cross-sector plays reflect a broader convergence between financial services disciplines, as firms look to offer more holistic advice and deepen wallet share with affluent households.

Selected Transactions: Strategic Intent Over Scale

Two deals from April illustrate how buyers are thinking more strategically about partnership and growth:

• April 8: A Boston-based registered investment advisor (RIA) with approximately $2.9 billion in assets under management was acquired by a national RIA consolidator with a long-term, non-resale model. Founded in 2005, the acquired firm serves high-net-worth clients and institutions with bespoke planning and investment strategies. The acquirer’s model emphasizes stability and brand preservation, highlighting a shift toward permanent capital and long-term alignment rather than short-term flipping.

• April 14: A multi-office wealth management firm announced a new private equity partnership that recapitalizes earlier investors and sets the stage for future expansion. With approximately $10 billion in AUM, the firm retains significant insider ownership and has expanded internal partnership ranks as part of the deal. The recapitalization strengthens the firm’s balance sheet and accelerates its ability to pursue M&A and advisor recruitment, reinforcing the idea that capital is not just for acquisitions—but for sustainable infrastructure development.

Both deals underscore a broader industry trend: firms are seeking partners that support growth without disrupting client relationships or firm culture. Integration capabilities and long-term alignment are becoming key differentiators in competitive deal processes.

Looking Ahead: Stability, Strategy, and Opportunity

DOXA sees several factors that are likely to shape the M&A environment throughout the remainder of 2025:

1. Business Owner Proactivity

There’s a growing recognition among advisory firm founders that waiting for the “perfect moment” to explore M&A may mean missing the window entirely. Many owners are now proactively seeking opportunities to shape their firm’s future while market conditions remain favorable.

Whether driven by growth goals, succession needs, or competitive pressure, these firms are initiating conversations earlier—and coming to the table with clearer expectations and more preparation. This has raised the overall quality and speed of deal execution across the industry.

2. Geopolitical and Policy Uncertainty

While the domestic economy remains resilient, potential policy shifts—such as tariffs or tax changes under a second Trump administration—are creating some uncertainty. In select sectors, this uncertainty could accelerate strategic sales as owners seek to hedge future risks.

Public sector instability, including layoffs, may also ripple into consumer confidence and employment levels, indirectly affecting advisory businesses serving middle-market clients. However, the high-net-worth and ultra-high-net-worth segments, which many RIAs serve, remain largely insulated.

3. Private Equity’s Continued Influx

Perhaps the most significant tailwind is the ongoing capital deployment from private equity. Despite higher interest rates, funds remain well-capitalized and eager to invest in scalable, cash-generative businesses like RIAs. The long-term nature of wealth advisory relationships—coupled with predictable fee-based revenues—continues to attract sophisticated investors.

Even as competition among buyers increases, disciplined acquirers are maintaining pricing standards and focusing on post-deal value creation. Firms that demonstrate consistent organic growth, robust compliance, and clear client segmentation are commanding premium multiples.

What It Means for Sellers

In this environment, advisory firm owners must move beyond thinking of M&A as a “deal” and instead consider it a strategic partnership.

Here are three key questions every seller should ask:

1. Can this partner help me grow—without losing what makes my firm special?

2. Is there alignment in how we serve clients, manage risk, and invest in talent?

3. What does success look like for both sides in 3, 5, or 10 years?

Sellers who prepare thoroughly—financially, culturally, and operationally—will have their pick of suitors. And increasingly, the best deals are happening not at auction, but through direct conversations between aligned partners who share a vision for the future.

The Road Ahead

As of mid-Q2, 2025 is shaping up to be another record year for wealth management M&A. Volume remains strong, buyers are well-capitalized, and firms of all sizes are engaging in strategic discussions. The market is maturing—and with it, expectations are rising on both sides of the table.

At DOXA, we believe this is not just a moment of consolidation, but a defining era of intentional transformation. Advisory firms that embrace the changing landscape and prepare for scalable growth will emerge stronger, more resilient, and better equipped to serve clients in the decades to come.

If you’re a firm owner considering your next move—or a capital partner looking for the right opportunity—we’d love to connect.