The shift in the UK investment sector from privately owned, local businesses toward institutionally backed regional and national groups, often supported by overseas capital, is well underway and apparently unstoppable. This trend has been enforced by both the superior growth achieved by firms with access to capital and the attractive valuations realized for their shareholders.
For business owners thinking about succession strategy or exit timing, having a lens on this long-term transformation is vitally important.
Record deal values
The latest data reveals a number of record deals driven by large and international transactions. In 2025, the total value of deals over £5M reached an all-time high of £19.7B, an increase of 116% over the prior year. The value of PE deals, including overseas funds, hit £16.8B (+113%). The total value of deals by overseas parties, many of which were PE-backed, increased 139% to £17.9B, and the average deal value was £303M — up 238%!
Among service providers, notwithstanding bolt-on/consolidation deals, the overriding theme is the broadening of propositions by acquiring complementary capabilities, be it technology-based models adding services or service providers buying complementary skills to create more comprehensive solutions for clients. Among pension specialists, synergistic merger and acquisition (M&A) opportunities are arising for larger players to strengthen their positions and grow into new market segments. And whilst long-only asset management has been experiencing its usual flow of deals, including some of substantial size such as the public offer for M&G, there are also minority positions being taken in specialized alternative managers by larger international strategics.
Rising influence of overseas and North American private equity-backed buyers
The opportunities in the UK wealth management sector have inspired an inflow of investments from international funds and new private equity (PE)-funded consolidation vehicles created during the year. In fact, PE funds’ influence is not only restricted to wealth management. They are now also playing a more prominent role in employee benefits and pension consulting, as well as among service providers to advisors. But it would be wrong to conclude that PE-funded initiatives are the only force for change. The sector is also adapting to pressures from the regulator and rising costs while the developments in technology pervade the entire sector, all of which is prompting owners to reconsider current strategies for growth and profitability.
With growing scale and market position, more companies across the sector are becoming relevant to international — often North American — strategic acquirers and PE funds, including consolidators in wealth management, multi-family offices, and specialist managers and product providers.
Who’s selling?
Not surprisingly, given the overall trend away from locally managed firms, owner-managed businesses currently stand as the UK’s largest seller category, consistent with the age demographics of owners and active interest from consolidators in the sector.
The net result of buyers’ and sellers’ activities is the continuing transition of privately-held businesses becoming incorporated into larger organisations. These organisations are typically beholden to shareholders that subscribe to growth models based on “buy & build” strategies for creating synergies and economies of scale. In addition, the growing presence of institutional and corporate ownership is impacting the availability of opportunities to acquire privately held businesses “off market,” since the market has become more crowded with acquirers and vendors presenting multiple options for value creation and realisations.
Consolidation in wealth management has much further to go
The UK wealth management market includes over 6,000 entities involved in financial planning and/or portfolio discretionary investment management services for private clients. MarshBerry recently analyzed the larger wealth management businesses in the country, totalling some 770 entities employing 10 staff or more, using data from their most recent report and accounts filed at Companies House. The analysis reveals:
- 91% of the businesses are still under private ownership (a slight drop from 92% last year).
- 84 businesses (11% of the population) employed 50 or more staff at the last reporting date.
- 43 groups were backed by PE funds. A few more entities raised equity from PE funds during the year but have not yet filed their accounts for the year and, therefore, were not classified as such in our analysis.
- There has been a 22% growth in headcount among PE-backed businesses over the reporting period.
In addition, replete with new capital from PE funds, established consolidators in wealth management (like Shackleton and Wren Sterling) continue to complete acquisitions, and new consolidators have been created with the help of primary PE investments.
For owners who are ready to formulate an exit strategy, these facts combine to reveal a window of opportunity that remains wide open.
