What’s next for UK wealth management consolidation in 2026?
The current landscape of UK wealth management consolidation
Consolidation has reshaped the UK wealth management sector, driven by regulatory developments, economies of scale, demographic changes and technological advancements. Private equity (PE) has served as a principal catalyst for transformation within the sector. The robust fundamentals of wealth management have attracted substantial PE investment, particularly since 2021. PE investors have contributed both capital and expertise, facilitating the development of digital infrastructure and supporting ambitious growth strategies. PE-backed consolidators are leading market integration and innovation, fundamentally altering the competitive landscape.
The consolidation cycle has become increasingly measured. Whereas previous strategies relied on inexpensive debt and buoyant markets, the current environment is characterised by rising funding costs and heightened volatility, which have prompted a shift in priorities. The prevailing focus is on operational leverage, disciplined integration, and vertically aligned models that unify product, platform and advice under a single stewardship model. This approach has created opportunities for revenue synergies and has sustained acquisition appetite.
The future landscape for the UK wealth management market
North American PE investment will continue
It is likely that PE investors and PE-backed consolidators will remain prominent within the UK wealth subsector, particularly given the considerable levels of PE ‘dry powder’. A number of key consolidators and acquisition targets suitable for PE platform transactions are either on the market or rumoured to be coming to market in early 2026. Furthermore, the combination of a weak pound sterling and elevated domestic deal multiples has attracted increased US and North American PE investment into UK wealth management. This trend is expected to persist, with a greater proportion of consolidators transitioning to North American PE ownership, which in turn is likely to ensure deal values remain robust in the UK market.
Consolidation will continue with a broader range of M&A targets being considered
Despite several years of consolidation, the market remains fragmented. Leading PE-backed consolidators continue to acquire smaller financial planning firms (with assets under management of less than £3bn) at a rapid pace. However, with many of the larger owner-managed wealth management businesses forming attractive targets for further PE platform deals (Sovereign’s investment into Equilibrium being the most recent example), acquirers are likely to continue to look to a broader range of M&A targets and transaction types to add scale (eg carve-outs and financial planning operations tied to accounting firms).
Moreover, the ever-increasing regulatory burden and the ageing adviser population will ensure that many independent financial advisers (IFAs) continue to exit the market, thereby maintaining a steady pipeline of firms available for consolidation.
A potential further slowdown in transaction volumes
While consolidation is anticipated to continue, there is likely to be a balance of transaction volumes. This is due to ever-lengthening deal timelines as well as acquirers becoming more selective in respect of M&A.
There is an increasing emphasis on the quality of acquisitions, with factors such as organic growth generation (and, by extension, client and adviser retention), quality of proposition and cultural alignment regarded as critical. In some cases, these factors are more difficult to assess, which has extended deal timelines as acquiring firms undertake more rigorous due diligence.
One of the critical success factors of consolidation is disciplined integration. Integration remains a significant risk, and anecdotally a number of firms have struggled to meet financial targets post-acquisition. Poor integration can disrupt client service, cause adviser attrition, and result in cultural misalignment, undermining the intended benefits. With acquirers not wanting to repeat mistakes, more work is being done ahead of deal completion and as part of the due diligence, to ensure that integration can be executed successfully post-deal.
Finally, the recent Financial Conduct Authority (FCA) review on consolidation in the wealth management sector could also contribute to a slowdown in volumes. The findings from the review may give acquirers food for thought, particularly around how deals are funded and how change-in-control processes may have additional complexity. This in turn may also raise the bar for acquirers in terms of the threshold for quality of acquisition targets.
UK wealth management consolidation: 2026 outlook
Looking ahead to 2026, UK wealth management consolidation is set to continue at a more measured pace. US‑led PE and bank buyers are likely to remain active, while platform and technology vendor consolidation is anticipated to accelerate. Regulatory scrutiny and integration risks are expected to lengthen deal timelines, driving acquirers toward higher‑quality, culturally aligned targets and scalable, vertically integrated models. Structural demand, supported by pension trends and demographic shifts, should underpin earnings durability, with AI‑enabled diligence and disciplined execution poised to distinguish the sector’s winners.
For more information on the consolidation market for wealth managers, please contact Angela Toner and take a look at our Deal Services Review for 2025.