narayan
The first quarter of 2026 marked the most active start to a year on record for registered investment advisor mergers and acquisitions, according to DeVoe & Company’s Q1 2026 DeVoe RIA Deal Book. The quarter closed with 93 transactions, up 24% year-over-year and tying with the third quarter of 2025 as the most active quarter ever.
“Buyers entered 2026 with significant dry powder, while sellers continue to come to market in greater numbers,” the firm wrote in the report. “Beyond succession and valuation considerations, firms are pursuing partnerships to accelerate growth and expand capabilities faster than organic efforts allow.”
The composition of sellers is also moving upmarket with large ones (firms with $1 billion to $5 billion in assets) representing 30% of deals in the first quarter. That’s slightly ahead of last year at 28% market share. DeVoe’s report states nearly every major buyer is targeting this segment.
“Not only are these firms big enough to ‘move the needle’ for buyers, but size also often indicates greater stability and lower risk,” according to the report. “Transactions at this level can accelerate a buyer’s growth trajectory, add experienced advisory teams, and establish or strengthen a presence in key geographic markets.
Serial acquirers need these larger transactions to support their growth increases and maintain the target growth rates they’ve set for themselves. Meanwhile, many RIA owners in that asset range have attempted internal succession, but the next gen can’t afford to buy equity to make that transition happen.
“External transactions become the most practical solution, which has contributed to robust activity in recent years,” according to the report.
The average seller AUM inched up to a record of nearly $1.16 billion in the first quarter, up from about $1.06 billion in 2025 and $929,000 in 2024.
Mega sellers, those with more than $5 billion in AUM, were consistent with historical levels of activity, accounting for 15% of transactions in the first quarter and 14 deals during the period. This segment is expected to finish 2026 with 36 deals.
The first quarter saw a decline in small sellers, a multi-year trend. Firms with $100 million to $500 million in AUM represented 32% of deals in the quarter, down from 50% of deals in 2023. But this is not related to a decline in activity among this segment.
“Instead, other seller segments have accelerated,” according to the report. “Mid-sized, large and mega RIAs are coming to market at a faster pace, driven by strong buyer demand at the upper end. Because of this, larger transactions are capturing a greater share of overall activity.”
Over the last several years, the industry has seen the rise of minority investment shops, providing liquidity and growth capital to RIA firms. That includes companies like Constellation Wealth Capital, Rise Growth Partners and Elevation Point. DeVoe counted 14 minority deals in the first quarter, representing 15% of total activity. That’s nearly in line with 14% share in 2025.
But the minority investment activity is moving down-market, with a growing share targeting RIAs under $2 billion in AUM, the report states. In 2023, just four minority deals were for RIAs with under $2 billion. In 2025, that segment accounted for 20 out of 45 minority transactions. In the first quarter, DeVoe counted seven sub-$2 billion minority deals, more than the total number completed in 2024.
“Sub-$2B RIAs present a more accessible entry point for investors, but the appeal extends well beyond price. Many firms in this cohort are led by founders confronting a familiar set of pressures,” according to the report. “These challenges include limited capital to fund organic growth, technology that has not kept pace with client expectations, and internal succession affordability issues. These are the conditions under which minority capital is most differentiated. It can address strategic gaps without requiring full transfer of control.”
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