RIA Dealmaking Heads For Another Record As Private Equity Finds New Ways To Buy In

Wealth management dealmaking is on pace for another annual record, according to Echelon Partners, even as private equity increasingly takes minority stakes in large platforms rather than acquiring them outright. Echelon counted 125 announced wealth management transactions in the third quarter, tying the second-highest quarterly total on record. Year to date through September, the count reached 387 deals, up 12.2% from a year earlier. Echelon raised its full-year forecast to approximately 510 transactions, compared with 466 in 2025.

The largest deals of the quarter were minority investments. Merchant Investment Management acquired a 25.9% stake in Ironbark Financial Group, which oversees $66.6 billion in assets. Hamilton Lane arranged a $270 million continuation vehicle for Savant, which manages $57 billion, and Carlyle invested $600 million in Prime Capital, which oversees $50 billion. Echelon noted these transactions supply capital to established businesses while leaving existing leadership and ownership largely in place.

Private equity participated directly or through sponsorship of acquiring firms in 102 third-quarter transactions. However, the share of deals completed by PE-backed acquirers slipped to 73.6% from 75.8% in the second quarter. Strategic buyers continued pursuing outright acquisitions, particularly among larger firms; they accounted for 26 of the quarter's 37 transactions involving businesses with at least $1 billion in assets. Examples cited include Wealth Enhancement Group's acquisition of RWA Wealth Partners and Corient's purchase of Summit Trail Advisors. Buyers were also selective, with Vistria Group investing in Curi Capital, which serves medical professionals, and Corient acquiring Music Row Wealth Management. Tax capabilities and institutional consulting businesses also drew interest.

Echelon characterized the shift among the most active consolidators as a move from aggregation toward integration. Hightower accounted for five of the quarter's 12 billion-dollar transactions among the most active buyers, including four conversions of affiliated practices into its Signature Wealth channel. The 10 most active buyers, each completing at least three deals, accounted for 47 transactions, with median target size falling to approximately $573 million from $810 million in the prior quarter. Echelon cautioned that this does not necessarily signal a lasting preference for smaller targets.

Echelon CEO and managing partner Dan Seivert warned that announcements are a lagging indicator, since deals often take months to negotiate and close. He reported continued strength in seller inquiries, new engagements and buyer participation. Echelon estimates that only about 2.9% of the roughly 17,000 registered advisory firms transact annually, compared with roughly 5% in a healthy market. Separately, Echelon tracked a record 51 wealth technology transactions in the quarter, up 27.5% year over year.