A record 55 mergers, acquisitions and other deals involving registered investment advisory firms took place in the third quarter, a 57% increase over the previous quarter, according to a report by Echelon Partners.
“In total, there were 23 firms with more than $1 billion in assets acquired during the third quarter — also a record level,” the company said. “The firms that are being acquired in 2020 are some of the largest — with an average of over $1.7 billion in assets — and most professionally run organizations in the wealth management industry
Professional buyers — which include platforms, consolidators and aggregators — and their interest in acquiring larger RIA firms fueled a substantial amount of deal activity during the third quarter, the company said.
“With heightened competition between professional buyers over high-quality sellers, we anticipate this trend will continue and that it will play an increased role in M&A activity moving forward,” Echelon said.
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