Private equity (PE) activity in the wealth management merger and acquisition (M&A) market continued to expand during the third quarter of 2025. Through the first nine months of the year, 60 PE-backed firms completed transactions, and nine of those firms executed their first acquisition since raising capital. This increase represents a meaningful step in the evolution of the market, as capital continues to flow to the largest established consolidators and to a growing pool of new entrants that are eager to establish a presence and build platforms of their own.
A more diverse and competitive selling environment emerges
Historically, many advisors viewed large national firms as the primary path for an exit or liquidity event. Today, however, smaller PE-backed buyers are emerging as credible alternatives. For some sellers, joining a developing platform offers the opportunity to play a more visible leadership role, shape firm strategy, and directly influence growth initiatives. This has introduced a new dynamic in transaction negotiations, where the capabilities and ambitions of the leadership team carry as much weight as the firm’s financial profile. In many cases, buyers are assessing the potential of the owner and their team as much as the book of business itself.
The competitive backdrop is also being shaped by scarcity in certain markets and capabilities. Demand remains strong for firms with concentration in desirable geographies, unique client niches, or specialized service offerings. When these factors align, buyers are willing to bid more aggressively to secure a transaction. At the same time, the importance of disciplined diligence has only increased. While the rapid pace of activity can create pressure to move quickly, buyers understand that shortcuts in diligence carry risks for integration, client retention, and long-term performance. As a result, experienced PE sponsors and their portfolio companies are investing in dedicated integration teams, well defined onboarding processes, and structured approaches to relationship management.
