FUNDRAISING NEWS | January 02, 2025
San Francisco-based RIA consultancy DeVoe & Company estimates that 2024 is officially the most active year on record for RIA M&A, with 269 transactions announced so far, surpassing the previous high of 264 deals recorded in 2022.
The fourth quarter of 2024 has also set a new record for the most active quarter, with 78 transactions, topping the prior record of 76 deals in Q4 2021 and well up from 63 transactions in the same quarter a year ago.
A combination of factors have driven the uptick in M&A activity, according to DeVoe, including a buoyant stock market boosting valuations, lower borrowing costs for buyers due to interest rate cuts, and escalating competitive pressure from tech-forward, mega-RIAs. The report also noted that scale and succession planning remain the key decision drivers for sellers.
The upsurge is taking place amid growing competition in the RIA space, with private equity-backed consolidators continuing to play a dominant role in deal volume. DeVoe said it expects more deals to add to the final tally before closing the books on 2024, setting the stage for a strong start to 2025.
