There has been a consolidation surge in the UK independent financial advice sector driven by US capital, a report from Heligan Corporate Finance has revealed.

Research from the investment and advisory group showed there were 133 IFA merger and acquisition deals in 2025.

That marked an increase from 105 in 2024, and a steady rise from around 50 in 2020.

According to Greg Easter, partner at Heligan Corporate Finance, recent consolidation has been driven by private equity investment and regulatory change.

The report showed that in 2025 platforms backed by private equity accounted for 75 per cent of deals, up from 42 per cent in 2020.

Easter said access to significant capital allowed platforms to pursue “buy-and-build strategies” by purchasing advisory firms “to rapidly scale assets under management and distribution capabilities.”

Much of the investment has come from the US.

In 2020, two private equity firms who invested in UK IFA platforms were from the US. By 2025, that number had risen to 18.

Origin of private equity firms invested in UK IFA platforms
	2020	2021	2022	2023	2024	2025
UK	13	16	19	19	20	23
US	2	6	10	13	15	18
France	0	0	0	1	1	1
Sweden	0	1	1	1	1	1
Netherlands	0	1	1	1	0	0

Source: Heligan Group

Easter said: “Capital continues to flow into scaled platforms, particularly from US investors, which is accelerating the shift towards larger, integrated wealth businesses.”

Figures cited by Easter showed US-backed firms were estimated to represent £222bn of assets under management, compared with around £165bn for UK-backed platforms.

Easter said he expected this trend to continue, “leading to a greater share of ownership shifting towards international investors over time.”

The model

The report outlined that the UK was well suited to acquisition strategies because it is a highly fragmented market with thousands of owner-managed practices.

According to the report, rising regulatory, compliance and technology costs have made it more challenging for smaller firms to operate independently.

Similarly, the report said independent advisers approaching retirement age are seeking succession solutions.

The figures showed deals were concentrated among smaller firms, with IFA businesses managing less than £200mn in assets accounting for 67 per cent of acquisitions in 2025.

The balance has also shifted towards large consolidation platforms whose strategy is to acquire smaller advisory firms.

Consolidators accounted for 55 per cent of buyers between 2023 and 2025, up from 27 per cent between 2020 and 2022.

By region, the South East saw the most adviser deals between 2023 and 2025 (60), followed by the North West (44).

However, Wales only saw nine deals and Northern Ireland eight deals in that time. There were three deals in Jersey.

Easter said he expected valuations in the UK advice market to “remain high for some time”.

However, he added “current valuation levels may reflect elements of a valuation bubble” which “could correct as the market develops, and greater emphasis is placed on delivering organic growth.”

Easter concluded: “Overall, those firms that can demonstrate strong organic growth, scalability, clear earnings visibility, and those who can clearly articulate their unique value drivers — including client demographics, sector or segment focus, use of technology, and differentiated product offerings — will be best positioned to attract premium valuations.”

hereward.mills@ft.com

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