Report: 20% of Wealth, Asset Managers to Be Acquired by 2029

Core Insights - The wealth management industry is expected to experience significant consolidation, with an estimated 1,500 major transactions anticipated by the end of 2029, leading to about 20% of existing firms being acquired [2][4] - Analysts predict over 100 deals per year in wealth management through 2029, with estimates ranging from 120 to 150, excluding smaller transactions [4] - The total assets managed globally reached $135 trillion in 2024, marking a 13% year-over-year increase, while global financial wealth held by private households grew by 8% to $301 trillion [6] Industry Dynamics - The dealmaking activity in the registered investment advisor and asset management sectors, which began around 2020, is expected to intensify in the latter half of the decade [2] - The wealth and asset management industries may remain fragmented, but profitability is possible with a focused team and a limited client base, despite tighter revenue margins and rising costs due to technology and AI investments [3] - Clients in wealth management are increasingly seeking more comprehensive services, including multi- and single-family offices [3] Dealmaking Drivers - The consolidation in the industry is driven by four key factors: cutting costs through scale, expanding client segments and geographies, enhancing capabilities, and accessing capital for business funding [3] - A higher volume of dealmaking is anticipated among asset managers (60 to 90 deals per year) and alternative asset managers (80 to 120 deals per year) compared to previous years [5] - There is a decline in the number of new mutual fund or ETF managers annually, reflecting a broader trend in the industry [5]