Wealth manager M&A in 2022 soared to £137bn in terms of assets under management acquired – a near 60% rise on 2021 (£87bn).
Analysis of the sector by behavioural finance consultants Oxford Risk predicts “a significant rise” in long-term M&A activity in the wealth management sector.
The wealth management and Financial Planning sectors have seen a wave of mergers and acquisitions over the past fews with some weeks seeing several takeovers announced. Some firms have acquired 30 or more businesses.
Oxford Risk says the wealth management sector is facing “huge disruption” from factors including the growth of potential new customers to new delivery models and increased regulation.
It says more wealth managers will capitalise on the changes by scaling up and investing in digital and analytical capabilities to offer differentiated and market-leading services.
It expects more cases of large financial services companies looking to enter the growing wealth management sector through acquisitions.
It also believes that as clients demand greater access to alternatives and private market investments, more wealth managers will look to make acquisitions in this area as well.
Greg Davies, head of behavioural finance, Oxford Risk said: “One trend we may see more of in wealth management is larger wealth managers and financial institutions purchasing investment platforms, as with Abrdn’s purchase of Interactive Investor.”
The company provides customer-focused software to wealth managers.
