Mergers-and-acquisitions activity within the RIA space has slowed so far in 2024, with deal volume down 11% year-over-year through the third quarter, while total transacted AUM and average AUM per transaction have soared, according to Mercer Capital.
In its “Q3 2024 RIA M&A Update” report, Mercer said 155 transactions were reported through September, down from 174 during the same period in 2023. Despite the decline in the number of deals, there was a notable increase in the size of transactions, with total transacted AUM rising 168% to $541.5B. The average AUM per transaction surged to $3.5B, representing a 201% increase from the prior year.
Private equity firms played a significant role in these larger transactions, accounting for 63% of reported deals through September. Among the most notable deals was KKR’s acquisition of Janney Montgomery Scott LLC from Penn Mutual Life Insurance, adding over $150B in assets under administration to KKR's portfolio.
Mercer Capital also highlighted the growing influence of serial acquirers and aggregators, who were responsible for 66% of RIA transactions through September. Looking ahead, it said that as the Federal Reserve cuts interest rates, expectations for further rate reductions could spur renewed M&A activity heading into 2025.
Access the report here.
