Why RIAs Have Replaced Broker-Dealers As The Darlings Of M&A
Experts From Merchant, DeVoe, Integrated, Alaris And Bridgemark Discuss Private Equity’s Shift To RIAs
Wealth Solutions Report, 7/21/25 (Written by Larry Roth, Co-Founder of Ascentix)
The wealth management industry has experienced a wave of consolidation over the past decade or so, driven by investors hungry for growth and reliable cash flows.
But on closer inspection, the M&A activity can be divided into two distinct waves of dealmaking, one that appears to be far into running its course and another that’s gathering steam.
Independent broker-dealers have been so consolidated at this point that the space is almost unrecognizable compared to 13 years ago. In 2012, the top five broker-dealers controlled 47% of total revenues. In 2025, the top five broker-dealers, which changed tremendously, accounted for an astounding 72% of total revenues. Three firms have driven much of this consolidation: LPL Financial, Osaic and Cetera Financial Group.