The UK wealth management industry is set for a record-breaking year of mergers & acquisitions (M&A), with 77% 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%) of firms cited achieving growth and scale as a reason for acquiring, while 24% cited expanding into new jurisdictions and 15% 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% 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%) 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% of those actively acquiring had dedicated 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.”

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