ECHELON Partners Reports the Most Active Second Quarter on Record for RIA M&A, With 120 Transactions and $378 Billion in AUM Transacted

Volume Moderates from a First-Quarter Record but Sets New Second-Quarter and First-Half Highs; Firm Projects 500 Total Deals for Full-Year 2026

LOS ANGELES, July 28, 2026 /PRNewswire/ -- ECHELON Partners today announced the release of its 2Q 2026 RIA M&A Deal Report, showing that merger and acquisition activity across the wealth management industry moderated from a record first quarter yet delivered the most active second quarter in industry history. The report shows that 120 transactions were announced during the quarter¹, down from the all-time record of 142 set in 1Q 2026 but 17.6% higher than the 102 deals announced in 2Q 2025. The 262 transactions announced in the first half of 2026 mark the most active first half on record, well ahead of the 220 announced over the same period in 2025. Total transacted AUM reached $378 billion for the quarter.

The findings point to a market that is moderating in volume while continuing to scale in value, as well-capitalized acquirers pursue larger, at-scale targets. Average AUM per transaction² rose to just under $2.0 billion on a year-to-date basis, approaching the annual record of $2.1 billion set in 2021, the only year in which the figure has exceeded $2.0 billion. The median target size climbed 16.6% year-over-year to $733 million, reflecting buyers' continued willingness to pay premiums for high-quality, turnkey platforms.

"Volume easing off a record quarter isn't the headline," said Dan Seivert, CEO and Managing Partner at ECHELON Partners. "The headline is that the market still delivered its strongest second quarter and first half on record, and that activity is concentrating among a smaller group of repeat, well-capitalized buyers. That's where the industry is heading."

Key Trends Shaping Second Quarter 2026 Activity

Most Active Second Quarter and First Half on Record

While transaction volume of 120 deals moderated from the first quarter's all-time high, it represented a 17.6% increase over 2Q 2025 and the strongest second quarter the industry has recorded. Combined with a record first half of 262 transactions, the quarter underscored that activity remains structurally elevated even as it settles below the first quarter's peak.

PE-Backed Buyers Dominate an Increasingly Concentrated Market

Private equity-backed acquirers completed 91 of the quarter's 120 transactions, or 75.8%, an all-time high. Activity is consolidating around repeat buyers, with 24 firms announcing two or more deals and together accounting for 62.5% of quarterly volume, led by Stratos Wealth Network with 11. The wide gap between the median target of $733 million and the average of $3.9 billion reflects a top-heavy market anchored by mega-deals such as LPL Financial's acquisition of the $31.0 billion Mariner Advisor Network.

Large Platforms Are Winning the Capital Raise

As debt raised in the low-rate environment of 2020 and 2021 begins to mature, the largest platforms are turning to equity to fund their next phase of growth. During the quarter, Integrum Holdings invested in the $35 billion Allworth Financial alongside Lightyear Capital and the Ontario Teachers' Pension Plan, Farther closed a $150 million Series D led by General Atlantic at a valuation above $1 billion, and Berkshire Partners recapitalized the $15.5 billion Harbourfront Wealth Group. Management teams consistently framed these raises as fuel for future M&A.

First-Time Buyers Are Being Crowded Out

Only 13 transactions in the quarter, or 10.8% of the total, involved a buyer with two or fewer prior acquisitions, down sharply from 37 in the first quarter, with seasoned acquirers accounting for the remaining 89.2%. These conditions point to a highly competitive environment for every buyer, not only new entrants, as winning deals increasingly demands scale, breadth of offering, and integration capability. Even well-established platforms must compete aggressively on price and terms, a dynamic that reinforces the serial acquirer's "tuck-in" strategy as the dominant model and raises the barrier to entry for newcomers still further.

Buyers Seek WealthTECH to Deliver Tech-Enabled Advice

WealthTECH deal flow reached 40 transactions in the quarter, up 33% from 30 in 2Q 2025. Firms are aggressively pursuing technology that streamlines operations, expands advisor capacity, and improves the client experience, treating these capabilities as a competitive necessity rather than a differentiator.

Outlook for 2026: A Record Year Takes Shape

Looking ahead, ECHELON Partners projects approximately 500 transactions for full-year 2026, which would surpass the 2025 record of 466 and mark the most active year in the history of wealth management M&A. The outlook is supported by sustained demand from repeat private equity-backed buyers, a wave of platform capital raises earmarked for acquisitions, and an anticipated cycle of mega-recapitalizations as private equity holding periods mature.

"Every indicator points to 2026 becoming the most active year this industry has ever seen," added Seivert. "The firms setting the pace are raising capital, building capabilities, and consolidating their positions with a clear long-term view. This is no longer opportunistic dealmaking; it is the deliberate construction of the platforms that will define wealth management for the next decade."

The 2Q 2026 RIA M&A Deal Report provides a detailed analysis of transaction activity, emerging themes, and the strategic forces shaping the next phase of industry consolidation.

The full report is available for download at https://www.echelon-partners.com/research-and-insights.

About ECHELON Partners

ECHELON Partners is the preeminent investment bank and consulting firm focused exclusively on the wealth and investment management industry. The firm provides M&A advisory, capital raising, valuation, and strategic consulting services to RIAs, broker-dealers, and other financial services firms. ECHELON is widely recognized as the industry's leading authority on RIA M&A trends and publishes quarterly deal reports that serve as a definitive benchmark for sector activity.

¹Headline transaction and AUM totals exclude WealthTECH deals.

²Excludes transactions involving over $20 billion in AUM.

SOURCE ECHELON Partners