A clear pattern is emerging across the financial services industry—bigger firms are getting even bigger. The latest example is the planned merger between UK-based Mattioli Woods and Kingswood. This deal will create a £25 billion asset group backed by private equity firm Pollen Street Capital. But this is not an isolated case. From the United States to Europe and beyond, mergers and acquisitions (M&A) in the wealth management and IFA sector are accelerating.
So, what’s driving this consolidation, and what does it mean for independent advisers worldwide?
Why is the sector consolidating?
The global advice sector is being reshaped by a combination of strategic, financial, and regulatory pressures. Key drivers include:
1. Economies of scale
Larger firms can spread compliance, technology, and operational costs across more clients, making their models more profitable and resilient. In an era of rising regulatory expectations and digital transformation, scale offers a clear advantage.
2. Private equity capital
Advisory businesses offer recurring revenue, loyal client bases, and clear exit strategies. That’s why private equity firms are investing heavily in adviser platforms, aggregators, and RIA networks across markets like the UK, U.S., Australia, and South Africa.
3. Succession and exit planning
Many firm founders, particularly in developed markets, are reaching retirement age. M&A offers a structured exit route while providing continuity for clients.
4. Technology and client expectations
Modern clients demand digital access, seamless service, and data-driven advice. Larger firms have the resources to invest in technology that meets these demands, putting pressure on smaller firms to either adapt or align with larger platforms.
What does this mean for IFAs?
Consolidation doesn’t mean independents are obsolete—but it does mean the game is changing. Independent Financial Advisers (IFAs), Registered Investment Advisers (RIAs), and boutique wealth managers must rethink how they deliver value, scale their service, and future-proof their businesses.
🔍 Here are three strategic considerations:
1. Operate with scale, without losing independence
Many smaller firms are exploring strategic partnerships that allow them to retain ownership and branding while outsourcing non-client-facing functions like compliance, onboarding, CRM, and reporting. This model delivers the best of both worlds: autonomy plus infrastructure.
2. Build a business, not just a book
Advisers should think like entrepreneurs. Building a scalable, well-documented, process-driven practice makes your business more resilient and valuable, whether your goal is growth, partnership, or future sale.
3. Enhance the client experience
The firms that thrive in a consolidated environment are those that invest in relationships. Use technology to stay in touch, deliver more personalised advice, and anticipate client needs. Relationship-led firms still outperform, especially when they’re backed by strong systems.
Is bigger always better?
Not necessarily. While larger firms enjoy structural advantages, they can sometimes lose the agility and intimacy that clients value. Independent advisers often have stronger client retention, higher satisfaction scores, and more flexibility in how they deliver service.
The key is to combine that personal touch with the efficiency and professionalism clients expect from large institutions.
Consolidation is a signal, not a threat
The global M&A trend in financial advice is a sign of industry maturity, not a reason for panic. It reflects growing demand for advice, increased regulatory oversight, and client expectations for professionalism and digital access.
The rise of large, centralised advice firms is changing the industry’s structure, but it doesn’t change why clients choose an adviser. They don’t come to you for scale. They come for insight, trust, and decisions that feel human, not automated.
The firms that endure and grow won’t necessarily be the biggest, but they will be the ones who:
- Remove operational friction,
- Prioritise the client experience, and
- Make space to think beyond the next task.
In a shifting landscape, your ability to stay responsive, personal, and sharply focused on outcomes will remain your biggest asset.
