Asset and wealth managers formed the bulk of financial services M&A in the first half of 2026, according to PwC, and alternative asset manager deals are set to rise in the second half.
In the firm’s Global M&A in financial services mid-year outlook report, it said Bain Capital’s bid for Perpetual’s wealth management division was among major global deals in the six-month period, alongside Nuveen’s acquisition of Schroders.
“Many of the largest deals in the first half of 2026 have involved asset and wealth managers, with the US and the UK among the most active M&A markets. In asset management, merger activity among mid-tier firms continues to be driven by the need to improve efficiency, expand distribution, and enhance access to private markets, even as overall deal volumes remain muted,” the consultancy firm said.
The consultancy had previously flagged in its H1 outlook that PE roll-up strategies were gaining traction, especially in wealth management, and this proved to be the case during the half with PE acquiring independent firms, boutiques, mid-cap players and independent financial advisers.
This includes the aforementioned Perpetual deal, CC Capital acquiring Insignia Financial, TA Associates investing in Viridian Financial Group, Merchant investing in WT Financial and Oaktree Capital Management investing in AZ NGA.
PwC forecast this will remain an active area in the second half but that the next stage will be companies who have already been acquired coming back onto the market for a new buyer in the future.
PE investment is typically exited via a sale to a related strategic buyer, a secondary buyout to another private equity firm, a listing on the stockmarket or a sale back to the original founders. PwC specified that exit routes are ‘expanding’ beyond these traditional routes with continuation vehicles and sponsor-to-sponsor transfers.
“In markets where private equity investment in wealth management began earlier, a number of assets may come back to market over the next 12 months. The form of those exits, whether through consolidation among consolidators, sales to new financial sponsors, or acquisitions by strategic buyers, will help set the tone for future investment.
“As exit routes expand through strategic M&A, continuation vehicles, sponsor-to-sponsor transfers, and management buybacks, the market for GP ownership interests is becoming more active and more liquid.”
Elsewhere in the second half of 2026, the focus within financial services is likely to be given to “selective” deals involving alternative asset managers.
“We expect M&A involving alternative asset managers to increase, although activity may remain selective in the near term. Strategic buyers are continuing to seek multi-strategy platforms and exposure to higher-growth, higher-fee areas such as private credit, infrastructure, real estate, secondaries, and speciality finance.
“However, deal volumes have been constrained as buyers and sellers adjust to changing return expectations, fundraising conditions, and valuations. As pricing expectations reset, we expect alternatives deal activity to pick up.”
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