RIAs Hit Record High in M&A Activity: Fidelity Reports 132 Deals and $183 Billion in Purchased Assets

Wealth management M&A hits a record high in H1 2022, with 132 deals worth $183 billion in client assets, according to Fidelity. The number of transactions increased by 25% YoY, driven by the aging advisor base and widening buyer pool. Private equity-backed firms led the deals, with Focus Partners Wealth leading the cohort with 16 purchases totaling $54 billion in assets. The industry is expected to surpass the 233-deal record set in 2024, despite potential setbacks in supply and demand.

The first half of 2025 saw a record-breaking surge in wealth management M&A activity, according to Fidelity Investments' latest biannual M&A review. The report revealed that 132 transactions, totaling $182.7 billion in client assets, were completed during this period, marking a 25% increase year-over-year (YoY) [1].

The accelerated pace of dealmaking was particularly evident in April, which recorded the most active month on record for RIA transactions. The second quarter also saw 61 deals, representing $88 billion in purchased assets. Notably, the median deal size held steady at $517 million, indicating a consistent trend over the past decade [1].

Private equity-backed firms played a significant role in driving this activity. Focus Partners Wealth, backed by Clayton, Dubilier & Rice and Stone Point Capital, emerged as the most prolific dealmaker, completing 16 deals and amassing $53 billion in assets under management (AUM) [1].

The report also highlighted a shift in the makeup of active acquirers. From July 2024 to June 2025, the top 20 firms accounted for 60% of all transactions and 41% of purchased assets. This trend underscores the growing competitiveness and rigor in the M&A landscape [1].

Despite the record-setting pace, Fidelity noted that the market's growth is constrained more by the supply of sellers than by demand or capital. The report suggested that buyer demand remains exceptionally strong, and the market is not constrained by lack of capital or interest, but rather by the limited supply of sellers [1].

Institutional investors also demonstrated their appetite for American Express stock. GDS Wealth Management, for instance, increased its holdings by 3.4% in the first quarter, owning 64,621 shares valued at $17.386 million. Other institutional investors, such as Vanguard Group and Wellington Management, also boosted their stakes in American Express, reflecting a broader trend of institutional ownership at 84.33% of the company's stock [2].

Research analysts have weighed in on American Express, with varying ratings and target prices. BTIG Research set a $277.00 target price and gave the company a "sell" rating, while Truist Financial raised its target price to $340.00 and gave it a "buy" rating. The stock has an average rating of "Hold" and an average price target of $311.05 [2].

References:
[1] https://www.investmentnews.com/practice-management/ria-ma-activity-hits-record-pace-in-h1-2025-fidelity/261772
[2] https://www.marketbeat.com/instant-alerts/filing-gds-wealth-management-has-1739-million-stock-position-in-american-express-company-axp-2025-08-20/