The UK wealth management industry is set for a record-breaking year of mergers & acquisitions (M&A), with 77 per cent of wealth managers planning acquisitions in 2025, according to SEI.

SEI said its research, which was conducted with FoxRed Insight and Solve Partners, highlighted the growing appetite for transactions amid ongoing consolidation and succession challenges.

The UK wealth management sector saw more M&A deals in 2024 than in 2018, 2019, and 2020 combined, while 35 M&A transactions were completed in the first quarter of 2025.

Firms seemed to be taking a more selective and strategic approach, rather than the past trends of buying fast and prioritising cost savings, SEI noted.

Three quarters (75 per cent) of firms cited achieving growth and scale as a reason for acquiring, while 24 per cent cited expanding into new jurisdictions and 15 per cent pointed to filling a proposition gap

The report found that deals were increasingly focused on fit, integration potential, and the ability to improve long-term value.

However, the analysis also highlighted challenges, with just 32 per cent of firms believing that their M&A strategies had hit their financial targets.

It also identified integration barriers, such as a lack of a clearly defined destination business model, alignment of systems and processes, or sufficient transition resources.

Nealy one in five (19 per cent) firms had recently paused M&A activity to integrate previous acquisitions.

Although the majority of wealth management firms planned to make acquisitions in 2025, only 58 per cent of those actively acquiring had dedicated integration resources.

SEI said that sufficient advanced planned and robust resourcing throughout the process can help reduce fragmentation and improve business alignment and momentum, especially as deals increase in sophistication.

Of the firms that have integration resources, 92 per cent had ‘at least roughly’ delivered on financial synergies, compared to just 32 per cent without integration resources.

“Consolidation is set to remain a defining feature of the UK wealth management landscape,” stated SEI Investments (Europe) CEO, Jim London.

“However, the rulebook for success is changing. The benefits of consolidation are no longer measured by scale alone. The most effective firms have a clear destination in mind, with rigorous due diligence, a defined integration plan, and measurable targets to help them get there.

“This careful balancing act between acquiring and growing organically is what truly positions them for lasting enterprise value."

Solve Partners founder and non-executive director, Donald Reid, commented: “What has been called the ‘Wild West’ of M&A activity from two years ago - characterised by limited due diligence in some cases, an ‘any firm, any price’ approach, and incomplete integration - has given way to more disciplined strategies.

“Today’s successful consolidators are focused on revenue uplift through vertical integration, as well as cost synergies. They are tightening their due diligence processes, planning for integration, and focusing on revenue growth rather than simple cost synergies.”

FoxRed Insight founder and director, Gilly Green, added that integration was the "critical phase" that meant the difference between long-term pain or realising desired business outcomes.

“Our research found that it is under-resourced and ill-planned, with little focus on culture and effective communication," Green continued.

“Organic growth can be suppressed during acquisition activity, so, the speed and cohesiveness of integration is vital to reaping rewards quickly and minimising disruption.”

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