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M&A Deals Hit New Records

March 4, 2019

Mergers and acquisitions in the wealth management space continue growing at a healthy pace and reaching new highs, according to a recent report.

Last year saw a new record for deal volume for the sixth year in a row, according to a report from Echelon Partners cited by WealthManagement.com. In all, there were 181 RIA deals in 2018, the web publication writes. And while the growth has slowed — 2017 saw 168 deals while 2016 had 138 — the compound annual growth rate in deal volume since 2009 has been 15.9%, Echelon found, according to WealthManagement.com.

Furthermore, overall assets under management involved in the deals have set a new record for the fourth year in a row, the report found, according to the web publication. Total assets reached $229.7 billion in 2018, compared to $169.7 billion in 2017 and $62.3 billion in 2012, according to Echelon, WealthManagement.com writes.

Investment in fintech, including in wealth and investment management technology companies, jumped substantially in 2018, the report found, according to the web publication.

2018 saw $52.5 billion in fintech deals through venture capital, private equity and M&A activity last year, compared to just $16.1 billion the year prior, according to Echelon, WealthManagement.com writes.

Interest in so-called “wealthtech” is expected to continue, the company says, according to the web publication.

However, Echelon warns that deal tracking is “still largely an imprecise science” because of the way small and internal deals, as well as changes in how firms are categorized, can be a detriment to consistent data, WealthManagement.com writes. Echelon believes its reporting only captures around one-third to one-fourth of all the deals, according to the web publication.

By Alex Padalka
  • To read the Wealth Management article cited in this story, click here.