M&A Market Update
Mergers and acquisitions (M&A) activity in the UK investment sector did not take a summer break in August. No less than six transactions valued at more than £5m were announced, bringing the year-to-date (YTD) total to 44 deals.
August included the usual consolidation deals in wealth management but also a strategic acquisition in specialist investment trust management, as well as support services, involving private equity-backed (PE) acquirers, direct PE investors and an overseas acquirer. This is similar to the same period last year, both in terms of volumes, buyer types and subsector deal activity, in the continuing consolidation of key providers in the value chain for wealth management.
But the month also included an announcement that differs from the rest, both in its size and character. Standard Life announced it had raised up to £1.5bn from several high profile institutional investors (in addition to its own contribution of £0.5bn) for the expansion of its Pension Risk Transfer Business to offer trustees and sponsors of larger pension schemes alternative buy-out and buy-in solutions. The partnership is capitalising on a market which is expected to see over £350bn of DB assets being de-risked over the coming decade according to some forecasts.
All transactions announced during August were valued below £100m, evenly split between the ranges of £5m to £25m and £25m to £100m. While activity in the mid-market segment (£25m to £100m) picked up during the month, deal volumes of this size remain below levels seen in recent years. This reflects a growing number of transactions valued above £100m, alongside the continued dominance of smaller deals below £25m, which account for the majority of activity recorded in 2026 to date. However, it also indicates a more challenging environment for transactions in the mid-range, where financing conditions, valuation expectations and execution risk have made deals harder to complete.
PE-backed acquirers accounted for all but one transaction announced during August, with the sole exception involving an overseas-listed buyer. Many of the deals were bolt-on acquisitions by PE-backed wealth managers. But this month also saw WestBridge picking up the baton from Foresight Group as the lead investor in Beckett Investment Management. The occurrence of such refinancings, catering for management teams wanting to grow their businesses further, is becoming more frequent with widespread PE ownership in the sector.
As a very sizeable and fragmented sector, wealth management continues to attract the largest share of PE capital across the sector. But PE interest is by no means confined to this area. Other segments, including pensions administration and consulting, are also enjoying PE support. This reflects several characteristics that make businesses in the sector particularly attractive to financial sponsors, including recurring revenue streams, predictable and strong cash generation, defensive market positions and significant consolidation opportunities.
Notable transactions (August 2026):
- Standard Life announced the formation of a new UK Pension Risk Transfer (PRT) partnership with CVC Capital Partners, Prudential Financial Inc., Goldman Sachs, MS&AD Insurance Group and other institutional investors. The members are committing a total of £2bn initially to the venture, including Standard Life’s own contribution of £500m. The partnership will operate through Standard Life PRT Solutions and the capital will allow Standard Life, which is expected to control 51% of the voting rights, to compete more aggressively for the largest UK defined-benefit pension buy-ins and buy-outs.
- Canaccord Wealth agreed to acquire the front-office teams and client assets of EFG Harris Allday from Swiss-listed EFG International, with completion expected in Q4 this year. Harris Allday is a longstanding private client portfolio manager in the West Midlands, with a history dating back more than 175 years. It manages approximately £3.1bn of assets from its offices in Birmingham, where it enjoys a particularly strong franchise, Shrewsbury and London. Canaccord Wealth’s CEO, David Esfandi, specifically highlighted the opportunity to bring Canaccord’s existing wealth-planning capabilities to Harris Allday’s client base.
- PE-firm WestBridge announced it had agreed to invest in wealth manager Beckett Investment Management. It will take a majority position in Beckett while existing investor Foresight Group will partially exit, retaining a significant minority stake. Founded in 1988, Beckett now has assets under management of £2.1bn, over 5,000 clients and has achieved B Corp certification. WestBridge will back Beckett’s strategy of combining organic growth with selective acquisitions locally.
- Pacific Asset Management, the London-based asset manager controlled by the Australian multi-affiliate group, Pinnacle Investment Management, announced it had acquired activist investor and investment trust manager Asset Value Investors (AVI). AVI, which has £2.1bn of assets under management, is the investment manager to three London listed investment trusts: AVI Global Trust, AVI Japan Opportunity Trust and MIGO Opportunities Trust. The firm also manages four open-ended funds: AVI Global Special Situations Fund, AVI Japanese Special Situations Fund, AVI Worldwide Opportunities Fund and AVI Japan Discovery Fund. The deal will combine two complementary investment management businesses, reflecting Pacific’s commitment to investing in specialist investment teams and expanding its offering across public markets.
Other UK transactions (August 2026):
- Northcote Equity announced a minority investment in wealth manager Lockhart Capital. Lockhart advises on over £1bn of assets for 400 clients and operates out of three offices (Cobham, Aberdeen and Leeds). The investment will enable Lockhart to continue investing in its clients, people and technology while preserving the firm’s independent culture and employee-led ownership model.
- Isio announced the acquisition of specialist UK third party administrator of occupational pension schemes, Trafalgar House Pensions Administration.
- Equilibrium announced the acquisition of Hale-based Gresham Wealth Management, adding £285m of client assets.
- Fairstone announced the acquisition of Belfast-based wealth manager Ferguson Hill Asset Management, adding £135m in client assets.
- Clifton Wealth Partnership announced the acquisition of two South Wales-based advice firms – Banyard Independent Advice Services and Wilcox Financial Planning – adding an aggregate of £68m of client assets.
- Foster Denovo acquired Newcastle-based advice firm Shaun Carr Financial Services, adding £53m of assets under advice.
