Research Reveals More Than 75% of UK Wealth Managers Planning Acquisitions

LONDON, 26 June 2025 - SEI^® (NASDAQ:SEIC) today announced the findings of comprehensive research, conducted as part of a strategic partnership with FoxRed Insight and Solve Partners, and examining the benefits and synergies of consolidation in the UK wealth management sector. As consolidation continues to reshape the industry landscape, the research reveals the factors driving this trend and considerations for firms looking to make successful acquisitions.

Evolving reasons for acquisition

According to the research, the UK wealth management sector witnessed more M&A transactions in 2024 than in 2018, 2019, and 2020 combined, with the first quarter of 2025 seeing a strong start of 35 deals. This surge in activity reflects continued appetite and momentum, with the majority of firms (77%) actively intending to acquire in 2025.

Rather than past patterns of buying fast and prioritising cost savings, firms are taking a more selective and strategic approach to acquisition. Firms cited achieving growth and scale (75%) as the top reason for acquiring, followed by expanding into new geographies (24%) and filling a proposition gap (15%). Deals are increasingly focused on fit, integration potential, and the ability to enhance long-term value.

Identifying integration challenges

However, the research also highlighted key challenges that can make or break the success of an acquisition, with only 32% of firms believing their M&A strategies have hit their financial targets. Lack of a clearly defined destination business model, alignment of systems and processes, or sufficient transition resources can hinder the integration process and impact strategic growth. Many early acquisitions are only partially integrated and nearly one in five (19%) firms surveyed have recently paused M&A activity to integrate previous deals.

Resourcing for success

While most wealth management firms plan to acquire in 2025, less than six in 10 (58%) of those actively acquiring had dedicated integration resources, which are essential to achieving the goals of the transaction. Sufficient planning in advance and robust resourcing throughout the process can help decrease fragmentation and increase business alignment and momentum, particularly as deals increase in sophistication. Among firms that have integration resources, 92% said they have delivered at least roughly on financial synergies, compared to just 32% of firms without.

Commenting on the research, 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 benefits of consolidation are no longer measured by scale alone. The most effective firms have a clear destination in mind, with rigorous due diligence, a defined integration plan, and measurable targets to help them get there. This careful balancing act between acquiring and growing organically is what truly positions them for lasting enterprise value."

Donald Reid, Founder and Non-Executive Director of Solve Partners, said:

“What has been called the ‘Wild West’ of M&A activity from two years ago—characterised by limited due diligence in some cases, an 'any firm, any price' approach, and incomplete integrations—has given way to more disciplined strategies. Today’s successful consolidators are focused on revenue uplift through vertical integration, as well as cost synergies. They are tightening their due diligence processes, planning for integration, and focusing on revenue growth rather than simple cost synergies.”

Gilly Green, Founder and Director of FoxRed Insight, added:

“Integration is the critical phase that means the difference between long-term pain or realising desired business outcomes. Our research found that it is under-resourced and ill-planned, with little focus on culture and effective communication. Organic growth can be suppressed during acquisition activity, so, the speed and cohesiveness of integration is vital to reaping rewards quickly and minimising disruption.”

Methodology
The research incorporated findings from a survey of 75 wealth management firms and qualitative interviews with 42 C-suite individuals. The research was conducted by FoxRed Insight and Solve Partners between October 2024 and March 2025.

About SEI^®

SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that’s money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets. For more information, visit seic.com.