Wealth management mergers and acquisitions peak in 2024, 2025 projected growth.
In 2024, substantial merger-and-acquisition activity characterized the wealth management sector, with notable transactions such as Wealth Enhancement Group’s acquisition of Levy Wealth Management Group and Hightower’s majority share purchase of NEPC in Boston. Experts anticipate that interest in such deals will intensify in 2025.
Hightower, a prominent advisory firm based in Chicago, disclosed its acquisition of a majority ownership interest in NEPC in October. NEPC, an investment consultant and private wealth advisor, supervises over $1.6 trillion in client assets. When combined, the two firms will manage a total of around $1.8 trillion in assets under administration and $258 billion in assets under management. Wealth Enhancement Group, utilizing its private equity funding, acquired Levy Wealth’s $1.3 billion in assets under management, boosting its total AUM to over $90 billion. In the first six months of 2024, the organization finalized five deals, accumulating a total of $2.4 billion in assets through Echelon Partners’ data analysis.
Jim Cahn, Wealth Enhancement’s investment committee chair and chief strategy officer, predicts an increase in deal volume industry-wide, emphasizing that scale drives better client outcomes and enhanced RIA space efficiency. He notes new market entrants striving to gain scale through deal bidding but acknowledges the challenge of catching up to established industry leaders. Cahn suggests that sellers work with experienced buyers for optimal outcomes.
Despite the private equity surge in wealth management, many firms opt to remain independent or merge with competitors to attain increased scale while retaining full control. SFA Partners’ leaders expressed reservations about private equity financing, citing ownership struggles over 21 years in operation. President and COO Jamie Mackay highlighted the longevity of their firm compared to those acquired by private equity.
Industry experts anticipate accelerated M&A activity in 2025 under the incoming Trump administration and an expected shift in regulatory leadership. Changes at the Department of Justice and Federal Trade Commission with less regulation are likely to affect deal volume. Business lawyer and consultant Joseph J. Raetzer predicts heightened M&A activity amid regulatory changes, contrasting the pro-consumer stance of the current leadership. Raul Gastesi, partner at Gastesi, Lopez & Mestre law firm, agrees that a change in FTC leadership could alter M&A dynamics significantly.
In 2024, Cetera Financial Group announced the acquisition of Concourse Financial Group Securities, a subsidiary of Protective Life Corporation based in Birmingham, Alabama. The deal is expected to bring Cetera approximately 350 advisors managing $4 billion in assets and $12 billion under administration. Cetera, managing $224 billion with 12,000 finance experts, plans to conclude the acquisition in the first quarter of the forthcoming year.
Wealth Enhancement Group confirmed its departure from LPL Financial following Merit Financial Advisors, marking the second significant exit from the brokerage during the year. The separation is set to finalize by June 30, 2025, as both firms pursue independent paths.
