Foreign buyers, including those linked to sovereign wealth funds, were among the players in the space. One trend has been the rise of "adjacent" areas such as trust services coming into the mix.

North American mergers and acquisitions continued to increase in number last year, with deals such as the UAE-backed purchase of CI Financial, and Bain Capital’s acquisition of Envestnet, among the stand-outs. 

Total announced deals rose by 14 per cent last year to 366, according to figures from ECHELON Partners, the US investment bank that advises on wealth deals. The busiest quarter of 2024 was the fourth, with 125 deals, up from 95 a year earlier.

Source: ECHELON

The report noted that several deals involved overseas buyers, while transactions are spilling over into adjacent areas such as the trusts sector. 

“With ample well-capitalized buyers, it remains a seller’s market, particularly for firms with strong organic growth and niche expertise,” Dan Seivert, managing partner and CEO at ECHELON, said in his firm’s 37-page report. 

“Despite rising M&A activity, the market remains fragmented, attracting diverse capital providers. This influx is set to heighten competition for quality assets, driving valuations higher,” he wrote.

The report said that average assets per transaction fell slightly from $1.7 billion in 2023 to $1.4 billion in 2024. There were 11 transactions involving more than $100 billion in AuM – a record.

Among deal examples in 2024 was the Hightower Advisors’ purchase of NEPC; TPG’s acquisition of Creative Planning; KKR’s purchase of Janney Montgomery Scott; and the BlackRock, JP Morgan Asset Management deal with Dynasty Financial Partners. Other deals included the Allianz X, Constellation Wealth Capital deal with AITI Tiedemann, and the Pathstone/Hall Capital Partners transaction.

Buyer competition was intense between sponsor-backed strategics for add-on acquisitions, Seivert said. Private equity continued to pursue platform investments.

Seivert said that the consolidation is continuing, and strategic buyers are dominating the space, making up about 70 per cent of deals.

Wealthtech-related deals rose strongly last year, the report said. There were 138 deal announcements, rising from 104 in 2023, making a 37.2 per cent year-over-year increase. 

Looking ahead, Sievert said he expects another “robust” year in 2025 for dealflow, noting that advisors’ succession plans and the benefits of scale are making the wealth management M&A landscape more resilient to short-term market fluctuations and interest rate changes. 

Seivert said wealth managers are expanding into “adjacent verticals” such as accounting and trust services. In 2024, Cerity Partners acquired FB&D LLP, an accounting firm for high net worth clients, while F L Putnam bought Darwin Trust Co.