2020 was a year of consolidation for the wealth management industry, where public players like BlackRock, Fidelity, JPMorgan Chase, and Morgan Stanley announced new M&A deals. We analyze the M&A trends and take a closer look at the consolidation strategies of the largest players in the space.
Faced with rising costs, fee compression, stiff competition, and a shift in client interest toward passive investing, wealth managers are turning to consolidation to fuel growth.
Since 2014, the wealth management space has seen a steady increase in M&A activity, with deals peaking at 396 in 2019. Though 2020 saw a slight dip, M&A efforts of some of the largest wealth and asset managers in the US signal that consolidation will continue to shape the future of the industry.