Biggest RIA M&A Deals Set Stage for Active 2016
The 2016 M&A market for RIAs is expected to bring more large deals, with acquisitive advisory firms, private equity and banks leading the way.
"Advisory firms, consolidators and affiliates of consolidators are likely to be the most aggressive acquirers," says David DeVoe, who heads DeVoe & Co., a San Francisco-based M&A consulting firm. "I expect to see more acquisitions like Aspirants' acquisition of Hokanson Associates, where a large RIA is merged into an even bigger multi-billion dollar firm."
Indeed, two large RIAs merged in the first week of 2016: Pathstone Family Office absorbed Federal Street Advisors to form a new wealth management powerhouse with nearly $6 billion in assets under management, Pathstone Federal Street.
Private equity firms are also expected to be active RIA buyers in 2016.
“They see the average RIA growing at 15% plus in a minimally capital intensive business," says investment banker Elizabeth Nesvold, managing partner at New York-based Silver Lane Advisors.
And look for tech expertise to also spur deals.
"A key driver for M&A deals, especially at a regional level, is a need for new technology by acquiring firms," according to David Selig, CEO of Advice Dynamic Partners, a San Francisco-based consulting firm specializing in mergers and acquisitions.
Please click on the arrow above to see the deals that topped the market in 2015. Rankings and data provided by DeVoe & Co. --Charles Paikert