Fidelity: RIA Deal Size Rises, Volume Eases in 2024

Top Dealmakers

Wealth Enhancement Group was the top dealmaker through the third quarter both this year and in 2023, with 10 transactions in 2024 and nine last year, Fidelity reported.

As the fourth quarter started, WEG announced another big deal, acquiring FinTrust Capital Advisors, which has over $2.39 billion in client assets. Among its other transactions this year, the firm said in May it was acquiring Financial Advisory Group of Houston, which brings $1.22 billion in client assets.

Following WEG, the leading dealmakers this year have been MAI Capital Management, with seven deals, and four other firms with five deals each: Allworth Financial, Focus Financial Partners/The Colony Group, Focus Financial Partners/Kovitz Investment Group, and Waverly Advisors.

Nine other RIAs forged four deals apiece through the third quarter.

“It appears that four is the new 12-month transaction activity floor for serial acquirers,” Fidelity noted.

Private Equity vs. Rivals

Corey Kupfer, founder and managing partner at Kupfer PLLC, a law firm that represents RIAs in M&A deals, noted that non-private equity buyers have various strategies to compete for transactions with PE firms that can offer more money.

“For some of them it’s more independence and flexibility in terms of the control that the advisor can maintain over their practice,” he said.

Some offer advisors more capabilities or more say in the company’s management, direction and growth.

One family firm also sells its “Midwest values” and culture, Kupfer noted.

The lawyer also suggested that the industry is entering a phase with higher-level consolidation and predicted eventual aggregation among the big aggregators.