Private equity is stepping up its investment in the wealth management sector, drawn by its fragmentation, tightening regulations and the growing need for scalable platforms. This surge has been reflected in a string of deals, with PE Hub reporting 10 transactions since the start of 2025.
The wealth sector remains highly fragmented, with many smaller firms struggling under regulatory requirements and succession planning challenges, Callum Pirie, a director in Houlihan Lokey’s fintech group, told PE Hub. “Larger players, often with private capital backing, have the opportunity to consolidate these markets in the short term, generating significant value accretion in the process.”
Private equity has already played out this strategy in the US, pushing valuation levels to the higher end, Pirie said. “We are increasingly seeing US-based PE looking to Europe to find relative value in the wealth management market, which is driving competition for high-quality European assets.”
Delivering sustainable organic growth remains a key driver of value, Pirie added. “Firms are beginning to think more holistically about how to deliver this from both an operational and technological perspective, we expect this to become an even greater area of focus.”
Despite equity market volatility, there has not been a “marked slowdown” in the sector activity, he said. “In reality, the most educated investors in the wealth market have accepted that they need to be comfortable with equity market volatility.”
In the UK, increasing scrutiny from the Financial Conduct Authority as a result of Consumer Duty is driving businesses to really focus on the value of the service they provide to all clients, he added. “Many are having to look inward for a period of time to ensure their propositions are aligned to the FCA’s guidance, and clients are getting the services they pay for. To some extent, this is taking up senior bandwidth that would typically be directed towards pursuing acquisitions.”
Amid all this, organic growth remains a challenge, he said. “… wealth managers are having to become smarter in how they attract both new clients to the platform and growing the share of wallet they advise on from their existing client bases.”
Here are the 10 deals announced in the sector, starting with the most recent.
1. RedBird Capital-backed Arax picks up Schechter Investment Advisors
RedBird Capital Partners portfolio company Arax Investment Partners acquired Schechter Investment Advisors, the RIA business of Schechter, a Birmingham, Michigan-based wealth advisory and financial services business in early June.
Arax is a wealth and asset management platform.
2. IK makes first platform deal in Ireland with Kestrel Capital
IK Partners agreed to invest in Kestrel Capital, an Irish investment management and financial planning company, alongside the current owners of Kestrel in late May.
Dublin-based Kestrel provides services to high-net-worth individuals, family offices, corporations, charities, foundations and retirement plans. It was founded in 2015 and since then, Kestrel has increased its AUM to over €1 billion.
3. Bridgepoint in talks to buy wealth management firm Finzzle Groupe
Bridgepoint entered exclusive negotiations to buy a majority stake in Finzzle Groupe in May-end.
Founded in 1992, Finzzle is a wealth management consultancy. The Toulouse, France-headquartered company comprises 11 operating subsidiaries.
4. Great Hill Partners invests in Mission Wealth
Great Hill Partners made a minority investment in Mission Wealth, a Santa Barbara, California-based wealth management company in early May.
Mission Wealth remains independent and will be majority-owned by its employees.
5. PE-backed Pure Financial Advisors snaps up Fairhaven Wealth Management
Pure Financial Advisors, which is backed by Lee Equity Partners and Emigrant Partners, acquired Fairhaven Wealth Management, a Wheaton, Illinois-based financial planning and investment management firm in mid-April.
Based in San Diego, Pure is a financial education, planning and investment advice company.
6. AnaCap rebrands Wealthtime as Quanta Group after Craven acquisition
In early April, AnaCap rebranded Wealthtime into Quanta Group, a fully integrated wealth manager, following its acquisition of Craven Street Wealth.
London-based Craven, an independent chartered financial planning and wealth management company, oversees £2 billion ($2.6 billion; €2.4 billion) in assets.
7. CVC, Nordic, ADIA complete £5.4bn Hargreaves Lansdown takeover
A consortium comprising CVC, Nordic Capital and Abu Dhabi Investment Authority completed its take-private of Hargreaves Lansdown, which is valued at £5.4 billion ($7.0 billion; €6.5 billion), in late March.
Hargreaves Lansdown is a UK digital wealth management company, with headquarters in Bristol.
8. Charlesbank-backed Rise Growth Partners invests in Grimes & Company
Rise Growth Partners, backed by Charlesbank Capital Partners, made a minority investment in Grimes & Company, a Massachusetts-based wealth management firm, in mid-February.
Grimes & Company was founded by Timothy Grimes and is now led by son Kevin Grimes.
9. Stone Point acquires Kestra Holdings from Warburg Pincus
Stone Point Capital, in early February, acquired Kestra Holdings, an Austin, Texas-based wealth management platform, from Warburg Pincus.
Oak Hill Capital retains a minority stake.
10. RedBird Capital-backed Arax buys Cedrus Financial
RedBird Capital Partners portfolio company Arax Investment Partners acquired Cedrus Financial, a Littleton, Colorado-based wealth management and investment advisory firm, in late January.
Cedrus will operate within Arax Advisory Partners, which is Arax’s coalition of independent firms focused on investment advice and supervisory services for institutions, high-net-worth families and elite athletes.
PE Hub expects to see a wave of deals in the sector in the months ahead.
(Note: Bridgepoint owns PEI Group, the publisher of PE Hub.)
