WealthManagement reports that mergers and acquisitions (M&A) activity in the registered investment adviser (RIA) sector has reached unprecedented levels in 2024. According to DeVoe & Company, a record-breaking 269 transactions have been completed this year, surpassing the prior record of 264 deals set in 2022.

The fourth quarter of 2024 stands out as the most active in history, with 78 deals finalized as of December 17. According to WealthManagement , this surpasses the previous high of 76 transactions recorded in the fourth quarter of 2021. DeVoe attributed this surge to recent interest rate cuts, which reduced borrowing costs, and rising stock market valuations that increased RIA valuations.

Large firms, referred to as "meta-RIAs," have played a significant role in the heightened M&A activity. Those consolidators, known for their capacity to grow rapidly, have enhanced their competitiveness through dedicated M&A teams focused on scaling operations, expanding resources, and increasing geographical reach. Historically, these firms account for approximately 70 percent of RIA acquisitions.

DeVoe predicts robust M&A activity in the remaining days of 2024 and a strong start to 2025. According to WealthManagement, lower interest rates and improved debt service ratios are expected to fuel continued investment by active consolidators in the RIA space.

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