Consolidation in the UK wealth management sector shows no signs of slowing, but new research from SEI reveals a shift in strategy as firms adopt a more deliberate and value-focused approach to M&A.
The study, conducted by SEI in partnership with FoxRed Insight and Solve Partners, found that more mergers and acquisitions occurred in 2024 than in 2018, 2019 and 2020 combined.
Activity remains strong in 2025, with 35 deals completed in the first quarter alone and 77% of firms planning further acquisitions this year.
While deal volumes remain high, the motivations behind them are evolving. The research highlights a move away from the traditional “buy fast, cut costs” approach towards more strategic consolidation.
Achieving growth and scale was the top driver for acquisitions (75%), followed by geographic expansion (24%) and closing proposition gaps (15%).
Increasingly, firms are prioritising cultural alignment, integration potential and long-term value creation.
Jim London, CEO of SEI Investments (Europe) Limited, said: “Consolidation is set to remain a defining feature of the UK wealth management landscape. However, the rulebook for success is changing. The most effective firms have a clear destination in mind, with rigorous due diligence, defined integration plans and measurable targets.”
Despite the appetite for deals, just 32% of firms said their M&A activity had met financial targets.
Under-resourced and poorly executed integrations were cited as a major barrier, with 19% of firms pausing further activity to consolidate previous acquisitions.
Only 58% of acquiring firms surveyed had dedicated integration resources. Among those that did, 92% reported achieving at least some financial synergy targets, compared with just 32% of those without.
Donald Reid, founder and non-executive director of Solve Partners, said: “What was once described as the ‘Wild West’ of M&A, marked by limited due diligence and incomplete integrations, has given way to more disciplined strategies. Today’s successful consolidators are driving revenue growth through vertical integration and tighter execution.”
Gilly Green, founder and director of FoxRed Insight, added that cultural fit and communication remain undervalued: “Integration is the critical phase that determines whether deals deliver or disappoint. Our research found it is still under-resourced and poorly planned, with limited focus on culture and communication. Organic growth can be suppressed during acquisition activity, so cohesive and timely integration is vital to avoid prolonged disruption.”
The report is based on a survey of 75 wealth management firms and in-depth interviews with 42 senior executives, conducted between October 2024 and March 2025.
