Financial Services & Technology
Q1 2025 WEALTH MANAGEMENT M&A QUARTERLY REPORT
Wealth Management M&A Summary
Q1 2025 deal activity remained strong, building on 2024 momentum:
The AUM Sweet Spot Powering Wealth Management M&A
In Q1 2025, the median AUM for transactions decreased slightly to $500 million
While slightly down from the Q4 2024 median AUM, the Q1 figure reflects continued strength and significant growth from $394 million in Q1 2023
Firms with $100 million to $750 million in AUM continued to dominate, representing 69% of all deals in Q1 2025, up from 58% across full-year 2024
Private Equity’s Deepening Role in RIA Consolidation
Private Equity continues to be the driving force in RIA consolidation
Intensifying competition is compelling the independent RIAs to turn to PEbacked strategic acquirers for the benefits of scale, capital and operational and managerial resources
RIAs have a range of acquirers to choose from and may not need to compromise on valuation to maintain autonomy and access to resources
Targeting High- and Ultra-High-Net-Worth Clients
The growth of high -net-worth (“HNW”) and ultra-high-net-worth (“UHNW”) segments represents a significant opportunity
Cerulli Associates estimates that nearly two-thirds of US asset growth since 2011 has come from the HNW and UHNW segments
While wirehouses and private banks have traditionally dominated the HNW and UHNW segments, independent firms are gaining ground
WealthTech Adoption Reshaping M&A Dynamics
Acquirers are increasingly using M&A to expand or upgrade their own tech capabilities, especially in client experience and portfolio management
WealthTech platforms have become a key differentiator in competitive processes, influencing both valuation and buyer interest
Private capital remains focused on WealthTech as a value lever, not just a cost center - fueling more tech-driven roll-up strategies
Wealth Management Deal Activity
Deal Volume & Median AUM by Quarter
Three Key Observations
1. Deal Volume Remains Elevated M&A activity in wealth management remained strong in Q1 2025 with 72 deals, following 79 deals in Q4 2024
2. Private Equity Backed Acquirers Continue to Dominate Private equity-backed acquirers continued to lead industry consolidation in Q1 2025, accounting for 72% of all transactions
3. New Acquirers Entering the Market 50% of Q1 2025 acquirers were inactive in 2024, signaling renewed M&A participation
Wealth Management Acquirers
Top 10 Buyers in Q1 2025 Accounted for 40% of Deal Volume
2025 Acquirers by Type
Mid-sized firms continue to seek partnerships to access enhanced resources, technology, and growth opportunities
Strategic acquirers increased their share of deal activity from 14% in Q4 2024 to 25% in Q1 2025
The rise in median AUM from Q1 2023 to Q1 2025 highlights a growing preference for more established firms, as buyers increasingly seek platforms with stronger financial fundamentals
Q1 2025 Wealth Management M&A Transactions
Q1 2025 Deal Volume by Firm AUM Size
Wealth Management Transaction Spotlight1
by
Focus on Culture & Growth
Mercer Advisors' acquisition of Financial Partners Group (FPG) was driven by a strong alignment in culture, leadership, and long-term growth strategy
AUM: $660M
Location: Gallatin, TN
No. of Advisors: 3
Deal Date: 2/4/2025
“Bo and Scott have cultivated a highly respected practice, committed to delivering highquality advice. We believe deeply in their client-centric approach and focus on longterm success. Their values perfectly align with our own at Mercer Advisors. We look forward to supporting their continued growth and expanding the depth of services they can provide to their clients.”
Martine Lellis, Mercer Principal, M&A Partner Development acquired
By joining Mercer Advisors, FPG gains access to enhanced investment management and planning resources, as well as a broader team of specialists in areas such as estate and tax planning
PE-backing Fueled M&A
After completing 11 deals in 2024 alone, Mercer has maintained its pace as one of the most active acquirers in the RIA space
This continued activity highlights the role of PE support in enabling firms like Mercer to pursue rapid growth through acquisitions, deepening their presence in key markets and expanding their service capabilities
Emphasis on High Net Worth (HNW) Clients
FPG specializes in retirement planning and wealth transfer strategies for affluent clients across a wide spectrum, from mass affluent to ultra-high-net-worth
The partnership will further strengthen Mercer’s ability to deliver personalized, fiduciary-based wealth management services, reinforcing the broader industry trend of deepening capabilities in the HNW segment
Continuity of Leadership and Client Trust
Founding partners Bo Bowling and Scott Wilks emphasized that joining Mercer allows them to stay deeply involved in the business while expanding the resources available to their clients
Mercer’s model supports the legacy and personalized service of firms like FPG, helping ensure that growth through acquisition does not come at the expense of trust or cultural alignment
Q1 2025 Wealth Management M&A Transactions
Q1 2025 Wealth Management M&A Transactions
Q1 2025 Wealth Management M&A Transactions
Q1 2025 Wealth Management M&A Transactions
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About Harbor View Advisors
Operating at the intersection of investment banking and management consulting, we partner with inspiring companies and private equity firms to help them design and execute their strategies for growth or exit. With decades of successful client outcomes, we help growing teams improve their opportunities for success. We provide Sell-side advisory, Buy-side advisory and Strategic Consulting to innovative companies and financial sponsors.
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