Value of UK wealth M&A surges despite decline in deal volume

M&A in the UK wealth management market is changing, but the sector continues to see significant levels of activity, as buyers target scale and market reach through acquisitions.

A new report from MarshBerry found that total deal value in the UK wealth management industry hit a record high last year, despite overall deal volume declining in comparison to 2024.

MarshBerry’s latest The State of the UK Investment Sector report found that the total value of UK wealth management deals valued at over £5 million rose to £19.7 billion last year, representing the highest figure on record and an increase of 116 per cent from 2024.

This came in spite of the total volume of deals valued at more than £5 million shrinking by 10 per cent to 65, reflecting a market in which buyers are targeting fewer transactions, but focusing on larger, more strategic deals.

The growing prevalence of higher-value transactions was further backed up by the fact that 94 per cent of 2025’s total deal value was derived from deals worth more than £100 million.

MarshBerry Managing Director Fred Hansson said that the concentration of value in larger deals demonstrated that buyers were “prioritising scale and integration”, reflecting “a market that is maturing and becoming more institutionally driven.”

A trend that shaped UK M&A last year was an influx of investment from overseas buyers and this was also apparent in wealth management, with £17.9 billion of the total deal value coming from overseas parties, up by 139 per cent compared to 2024.

A total of 20 transactions last year involved overseas buyers, including six marking their first entry into the UK market. Major deals involving overseas buyers included the acquisition of family office Stonehage Fleming and wealth management firm Stanhope Capital by US wealth adviser Corient.

MarshBerry notes that many overseas buyers were private equity-backed. Overall PE investment was up sharply, with 33 transactions involving private equity investors and the total value of PE deals standing at £16.8 billion, a 113 per cent increase from 2024.

Looking ahead, MarshBerry forecast that wealth management M&A will increasingly be defined by diversification, as consolidators in maturing markets look to use acquisitions to expand into adjacent areas and add complementary services and capabilities to maintain growth.

Scalability is expected to remain a vital consideration for buyers, especially in areas of the market where larger targets with proven growth models are lacking. This will make the success of integration and profitability growth critical to consolidators seeking to raise capital.

Consolidation of fragmented markets is also poised to continue, including in sub-sectors such as Independent Financial Advisors (IFAs) that have seen high levels of activity over recent years. The UK IFA sector remains fragmented, with ownership largely remaining in private hands despite the scaled-up M&A activity of numerous roll-up vehicles.

As such, the report continues, bolt-on acquisitions are set to remain prominent, but with the growing scale of consolidators leading to the average size of transactions increasing and competition for targets intensifying.

Following a year in which PE funds made 10 disposals, including seven full exits to either strategic buyers or other PE firms, MarshBerry forecasts that “PE churn” will be a major trend in wealth management M&A this year, if markets prevail.

Mid-market PE funds deployed significant levels of capital in the aftermath of the COVID-19 pandemic in 2021 and 2022 and are now approaching the end of holding periods on these deals. As a result, many PE owners are set to review exit options and capitalise on strong demand from larger funds to realise returns on their investments.

Read more about the M&A trends to watch this year in our dedicated 2026 outlook

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