Wealth Management and RIA M&A: A Founder's Guide to the 2025-26 Market
The wealth management M&A market is experiencing a sustained boom that shows no signs of slowing. In 2025, 466 RIA deals were completed according to ECHELON Partners, a 27% increase from the prior year. In Q3 2025 alone, a record $1.22 trillion in assets were transacted. The 2024 RIA M&A market set its own record with 366 transactions per ECHELON Partners, surpassing the previous high of 341 deals in 2022. DeVoe & Company, which uses a different methodology, tracked 272 deals in 2024, with the fourth quarter delivering 78 deals: the most active single quarter in its dataset.
For founders and CEOs of wealthtech companies, whether you have built a portfolio management platform, a financial planning tool, a client engagement system, or a data analytics solution, this environment creates extraordinary opportunity. The same forces driving RIA consolidation are fuelling demand for the technology that powers modern wealth management. Bain Capital's $4.5 billion take-private of Envestnet in November 2024 was the defining wealthtech deal of the cycle, and it will not be the last.
Private equity firms are the dominant force in this market, involved in 71% of all disclosed RIA transactions in 2024 and driving the creation of "meta-RIA" platforms that require sophisticated technology infrastructure. Strategic acquirers accounted for 85% of deal activity in 2025, with PE-backed platforms leading the charge. For wealthtech founders, every RIA consolidation transaction creates downstream demand for technology: unified reporting, portfolio management, compliance automation, and client experience tools.
This guide examines both the RIA M&A landscape and the wealthtech M&A market that sits alongside it, providing founders with the insights needed to evaluate their options in this exceptionally active market.
Market Overview
The RIA Aggregator Landscape
The registered investment advisor market in the United States is enormous and highly fragmented, with over 15,000 RIA firms managing trillions in client assets. This fragmentation has attracted a new class of acquirer: the PE-backed RIA aggregator, which acquires independent advisory firms, provides shared technology and operations, and builds scale advantages.
The most active RIA aggregators include:
Focus Financial Partners: One of the original RIA aggregators, Focus was taken private by Clayton, Dubilier & Rice in a $7 billion deal in 2023. The firm operates a partnership model, acquiring majority stakes in independent advisory firms while allowing them to maintain their brands and client relationships.
Hightower Advisors: Backed by Thomas H. Lee Partners, Hightower has been among the most aggressive acquirers, targeting advisory firms with $500 million to $5 billion in AUM. The firm provides comprehensive technology, compliance, and operational support to its partner firms.
CI Financial (now Corient): The Canadian wealth management firm rebranded its US operations as Corient and has completed dozens of acquisitions to build a national RIA platform. The firm has been one of the largest acquirers by deal volume.
Mercer Advisors: Backed by Oak Hill Capital and other investors, Mercer has pursued an aggressive acquisition strategy, recently acquiring Financial Partners Group and other advisory firms. Mercer focuses on providing comprehensive financial planning, including tax services, to its acquired firms.
Creative Planning: Led by Peter Mallouk and backed by General Atlantic, Creative Planning has grown to manage over $375 billion in AUM through a combination of organic growth and acquisitions.
The Wealthtech Software Landscape
The technology layer serving wealth management encompasses several categories:
Portfolio management and reporting: Platforms like Orion Advisor Solutions, Black Diamond (SS&C), and Addepar provide the core technology infrastructure for advisory firms, handling portfolio accounting, performance reporting, and client communications.
Financial planning: Tools like MoneyGuidePro (Envestnet), eMoney (Fidelity), and RightCapital help advisors create comprehensive financial plans for clients.
Alternative investments: iCapital has emerged as the leading platform for distributing alternative investments to wealth management firms, recently acquiring AltExchange to enhance its data management capabilities.
Data and analytics: Envestnet (now private under Bain Capital) provides data aggregation, analytics, and investment solutions serving over 111,000 financial advisors and managing more than $6 trillion in platform assets.
CRM and client engagement: Salesforce Financial Services Cloud, Redtail (acquired by Orion), and Wealthbox serve as the relationship management layer for advisory firms.
Compliance and regulatory technology: RegTech solutions for investment advisors, including automated compliance monitoring, disclosure management, and regulatory reporting.
M&A Activity and Deal Flow
The Envestnet Take-Private: A Watershed Moment
The most significant wealthtech M&A transaction in recent history was Bain Capital's acquisition of Envestnet for approximately $4.5 billion ($63.15 per share), completed in November 2024. The deal, which also involved participation from Reverence Capital and Norwest, was supported by strategic minority investments from BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors.
Envestnet serves as the financial plumbing for a vast segment of the wealth management industry, providing data aggregation, portfolio management, analytics, and investment solutions to over 111,000 financial advisors managing more than 20 million accounts. The company's $6 trillion+ in platform assets makes it one of the most critical technology infrastructure providers in the industry.
The take-private structure allows Envestnet to invest in product development and strategic acquisitions without the pressure of quarterly public market scrutiny. For wealthtech founders, the Envestnet deal signals several important dynamics: the enormous value of wealth management technology infrastructure, the appetite of top-tier PE firms for the sector, and the potential for post-privatisation bolt-on acquisitions.
iCapital's Expansion
iCapital, the leading platform for alternative investment access in wealth management, acquired AltExchange in October 2024 to enhance its data management and reporting capabilities. AltExchange specialises in AI-driven data aggregation for alternative investments, complementing iCapital's existing platform with automated document retrieval and investor reporting tools.
This acquisition followed iCapital's previous purchases of UBS Fund Advisor and Mirador, demonstrating a sustained buy-and-build strategy in the alternatives distribution space. iCapital's growth reflects the broader trend of wealth management firms increasing their allocation to alternative investments and requiring sophisticated technology to manage these complex asset classes.
Orion Advisor Solutions
Orion, a leading provider of wealth management technology, has been both an acquirer and a potential acquisition target. The company's acquisition of Redtail Technology (CRM for advisors) and Brinker Capital expanded its platform from portfolio management into client relationship management and investment management. Orion's comprehensive platform approach, spanning portfolio accounting, financial planning, CRM, and compliance, exemplifies the trend toward integrated wealthtech suites.
RIA Transaction Volume
The broader RIA M&A market provides critical context for wealthtech founders:
| Year | Total RIA Deals (ECHELON) | Key Trend |
|---|---|---|
| 2022 | 341 | Previous record high |
| 2023 | 321 | Slight decline amid rate uncertainty |
| 2024 | 366 | New record; 14% increase YoY |
| 2025 | 466 | Another record; 27% increase YoY |
In 2024, 11 transactions involved firms with over $100 billion in AUM, the highest ever recorded. The average deal size has increased by 11%, reflecting the growing scale of acquirer platforms and the maturation of the consolidation cycle.
Private equity involvement reached 71% of all disclosed transactions in 2024, with PE-backed platforms accounting for the majority of acquisition activity. In 2025, strategic acquirers (most of which are PE-backed) accounted for 85% of deal activity, alongside notable financial buyers like Madison Dearborn and Stone Point Capital.
Notable Wealthtech Transactions
| Deal | Buyer | Approximate Value | Date |
|---|---|---|---|
| Envestnet | Bain Capital | $4.5 billion | November 2024 |
| AltExchange | iCapital | Undisclosed | October 2024 |
| Redtail Technology | Orion | Undisclosed | 2022 |
| Focus Financial Partners | Clayton, Dubilier & Rice | ~$7 billion | 2023 |
| Addepar (funding) | Various investors | $150 million+ Series F | 2024 |
Valuation Benchmarks
RIA Valuations
RIA firms are typically valued based on a percentage of assets under management (AUM) or a multiple of revenue/EBITDA:
- Small RIAs ($100M-$500M AUM): 5x to 8x EBITDA or 1.5% to 2.5% of AUM
- Mid-size RIAs ($1B-$5B AUM): 10x to 15x EBITDA or 2% to 3% of AUM
- Large RIAs ($5B-$30B AUM): 15x to 20x EBITDA
- Mega-RIAs ($30B+ AUM): 18x to 25x EBITDA, though with increased scrutiny on organic growth
Wealthtech Software Valuations
Wealthtech software companies follow SaaS valuation frameworks, with premiums for the sector's attractive characteristics:
Revenue multiples: Private wealthtech companies typically trade at 5x to 10x ARR, with the range depending on growth, retention, and strategic importance:
- Niche tools (compliance, reporting add-ons): 3x to 5x ARR
- Core platforms (portfolio management, financial planning): 5x to 8x ARR
- Market-leading infrastructure (data aggregation, investment platforms): 8x to 15x ARR
Envestnet's $4.5 billion valuation on approximately $1.2 billion in revenue implies approximately 3.7x revenue, which may appear modest but reflects the company's mature growth profile and the complexities of the take-private structure. Faster-growing wealthtech companies command significantly higher multiples.
EBITDA multiples: Profitable wealthtech businesses trade at 12x to 20x EBITDA, with premiums for:
- Platform-level infrastructure with high switching costs
- Embedded financial data and analytics
- Integration into advisory firm workflows
- Regulatory compliance capabilities
What Drives Premium Valuations in Wealthtech
- Advisor stickiness: Software deeply embedded in daily advisory workflows (portfolio management, financial planning, CRM) benefits from extremely high switching costs
- Data assets: Proprietary financial data, performance benchmarks, and client analytics are highly valued
- Regulatory moat: Compliance and regulatory technology creates natural barriers to entry and switching
- Network effects: Platforms like iCapital that connect asset managers with advisory firms benefit from network effects that increase value with scale
- Payments and transaction revenue: Wealthtech companies that capture transaction-based revenue (trading, custody, payment processing) benefit from revenue streams that scale with AUM growth
Key Acquirer Profiles
Bain Capital (and Other Large PE Firms)
The Envestnet deal established Bain Capital as a major force in wealthtech. Other large PE firms active in the space include Vista Equity Partners, Thoma Bravo, and Hg Capital, all of which have invested in financial services technology. These firms target market-leading platforms with $100 million+ in revenue and clear paths to operational improvement.
RIA Aggregator Platforms
PE-backed RIA platforms are increasingly acquiring technology companies to differentiate their offerings and attract advisory firms. As these platforms grow to manage hundreds of billions in AUM, their technology requirements become more sophisticated, creating demand for specialised wealthtech solutions.
Orion and Other Strategic Buyers
Orion Advisor Solutions has demonstrated an appetite for acquisitions that extend its platform. Other strategic buyers include SS&C Technologies (which owns Black Diamond), Fidelity (which owns eMoney), and Broadridge Financial Solutions. These companies acquire wealthtech businesses that complement their existing offerings.
iCapital
iCapital continues to pursue bolt-on acquisitions in the alternatives distribution space. Founders of tools for alternative investment data management, reporting, or distribution should consider iCapital a potential acquirer.
Constellation Software
Constellation Software and its operating groups have a presence in financial services technology. For smaller wealthtech businesses, Constellation's permanent-hold model and operational autonomy offer a differentiated exit path.
Consolidation Drivers
RIA consolidation drives wealthtech demand: Every RIA acquisition creates a technology integration challenge. As advisory firms are consolidated onto common platforms, demand for unified portfolio management, reporting, and compliance tools increases. The 466 RIA deals in 2025 represent 466 potential technology integration projects.
Regulatory complexity: Increasing regulatory requirements for investment advisors, including the SEC's marketing rule, cybersecurity requirements, and fiduciary standards, drive demand for compliance technology and create acquisition opportunities for RegTech companies.
The shift to fee-based advice: The ongoing transition from commission-based to fee-based advisory models requires different technology infrastructure, from portfolio management and rebalancing tools to fee billing and performance reporting.
Alternative investment democratisation: The growing allocation to alternatives in wealth management portfolios drives demand for platforms like iCapital and technology for managing complex, illiquid investments.
AI and personalisation: Artificial intelligence is transforming client engagement, portfolio construction, and compliance monitoring in wealth management. Wealthtech companies with AI capabilities are commanding premium valuations and attracting acquirer interest.
Generational wealth transfer: The estimated $124 trillion in intergenerational wealth transfer over the coming decades is driving advisory firms to invest in technology that appeals to younger, digitally native clients.
What This Means for Founders
The RIA boom is your tailwind: Even if you are not directly serving RIA aggregators, the massive consolidation of advisory firms creates downstream demand for technology. Understanding how your product fits into the RIA consolidation narrative strengthens your positioning with acquirers.
Data is a strategic asset: Wealthtech companies that possess proprietary financial data, whether client analytics, performance benchmarks, market intelligence, or compliance records, hold assets that are difficult to replicate and highly valued by acquirers.
Integration capabilities matter: As RIA platforms consolidate advisory firms, they need technology that integrates seamlessly with custodians, portfolio management systems, financial planning tools, and CRM platforms. Demonstrating robust API architecture and proven integrations significantly enhances your attractiveness to buyers.
Consider the PE-backed vs. strategic distinction: PE-backed acquirers (Bain Capital, Vista, Thoma Bravo) focus on operational improvement and typically hold for 3 to 7 years. Strategic acquirers (Orion, SS&C, Broadridge) integrate acquisitions into their existing platforms. Each offers different economics and post-transaction experiences.
Timing is exceptional: The combination of record RIA deal volume, massive PE dry powder, and accelerating technology adoption creates a seller's market for wealthtech companies. Founders who have been considering a transaction should recognise that current conditions are unusually favourable.
Compliance as a moat: If your software helps advisory firms meet regulatory requirements, this is a significant valuation driver. Regulatory technology creates natural switching costs and recurring demand that acquirers find extremely attractive.
Emerging Wealthtech Categories
Several emerging categories within wealthtech present additional M&A opportunities for founders:
Tax-integrated advisory: RIAs are increasingly expanding into tax services, and technology that integrates tax planning with investment management is in growing demand. In 2025, tax services integration was identified as a defining trend in wealth management M&A.
Digital estate planning: Tools that help advisors and clients manage estate planning, beneficiary designations, and intergenerational wealth transfer are gaining importance as the $124 trillion wealth transfer accelerates.
Advisor practice management: Software that helps advisory firms manage their businesses, from client onboarding and document management to billing and reporting, represents a core technology need that grows with every RIA acquisition.
Risk analytics and stress testing: Platforms that provide advanced portfolio risk analysis, scenario modelling, and stress testing are becoming essential as advisory firms manage more complex, multi-asset portfolios.
The Convergence of Consolidation and Technology
The wealth management and wealthtech M&A markets are in the midst of an extraordinary cycle. RIA consolidation has reached record levels, driven by PE-backed platforms competing aggressively for advisory firms. This consolidation creates enormous demand for the technology layer that powers modern wealth management, from portfolio management and financial planning to data analytics, compliance, and alternative investment platforms.
The Envestnet take-private at $4.5 billion demonstrated the scale of opportunity in wealthtech, and the pipeline of potential transactions remains robust. For founders of wealthtech companies, the current market offers strong valuations, multiple buyer types, and a clear strategic rationale for transactions.
Success in this market requires understanding how your business fits into the broader wealth management consolidation narrative, preparing your metrics and operations for acquirer scrutiny, and engaging with the right advisory partners to navigate a complex buyer landscape. Founders who approach the process with preparation and clarity will be well positioned to achieve outcomes that reflect the full value of what they have built.