RIA dealmaking started 2024 at a rapid pace, with 90 announced transactions for a year-over-year increase of 20%, according to Echelon Partners' first-quarter RIA M&A Deal Report. This was the second most active first quarter on record, the report said.
Strategic acquirers accounted for 85.6% of first-quarter transactions. Of the 77 deals these buyers announced, 64.9% involved firms with private equity backing.
RIAs remain the dominant strategic acquirer subcategory. Firms announced 62 transactions in the first quarter and maintained a majority share representing 69% of deals announced so far this year.
The subcategory saw a 13.1% increase in total assets transacted, while at the same time announcing nine fewer deals than in the fourth quarter. This trend highlights strategic buyers' continued emphasis on larger deals as well as recent strong equity market performance, Echelon said.
Financial acquirers announced 13 deals in the first quarter, representing an 85.7% increase over the fourth-quarter count. These transactions involved $225 billion in assets, a big comedown from the $1.1 trillion transacted in the previous quarter. Echelon ascribed the decrease to several large RIAs that received private equity investments in the fourth quarter.
