M&A in banking and wealth will take a different turn this year when it comes to the players on the stage, with more in India and the Gulf region, the author of this article argues. The argument speaks to a shift in the economic centre of gravity.

The following article is from Mike Foster (pictured below), head of acquisitions at Coleman Wealth, an international firm registered in Gibraltar and with offices in UK, Switzerland, Malta, Dubai, Singapore, and Malaysia. The business says it focuses on acquiring and managing high-quality financial services companies. To date, it has made seven such deals. 


Michael Foster

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M&A in global wealth management and financial advisory is only likely to accelerate in 2025. After a slowdown in deal flow last year, a range of factors will power a pickup. Coleman Wealth believes that some of these factors will include falling interest rates lowering deal financing costs, operational and market dynamics including tougher regulations, more challenging market conditions, and the increasing role of technology, which demands significant investment. 

Additionally, we have seen new players entering the market, with Indian and Gulf-based wealth managers expected to take a more significant role in wealth management M&A. These players are capitalising on substantial wealth generation in their home markets, flexing their muscles to deepen their services domestically while seeking to expand their operations globally. 

Global trends driving M&A and consolidation
A recent PwC survey predicted that one in six wealth managers globally will be acquired or exit by 2027. Consolidation is becoming essential to address global regulatory pressures, technological disruption, and the need for scale.

In the UK, regulations such as the FCA’s Consumer Duty are raising the bar for client care, transparency, and service delivery. Similarly, the European Union’s Retail Investment Strategy and updated US cybersecurity disclosure rules are compelling financial firms to adapt. Compliance has become significantly more challenging, especially for smaller firms, making consolidation an attractive solution to access the expertise and resources required to thrive.

Number of RIA M&A Transactions 2023-2024, Coleman Wealth
 

Technology is a further catalyst for consolidation. From AI-powered insights to advanced CRM systems, technology is reshaping the way wealth managers and financial advisors operate. AI is expected to streamline processes, boost productivity, and enhance client engagement. According to recent studies, 80 per cent of wealth managers see AI as a key driver of growth, with over 70 per cent identifying it as the most transformative development in the next two to three years.

Indeed, clients now expect the same digital interactions from wealth managers that they experience with tech companies, according to a recent report from global financial data provider LSEG. However, the cost of developing or upgrading these systems independently can be prohibitive for smaller firms. Consolidation provides a pathway to access cutting-edge technology, such as Coleman Wealth’s advanced CRM system, and integrating tools that enhance operational agility and personalised service. Larger, merged firms can build broader technological ecosystems, positioning themselves to meet evolving client demands while maintaining robust compliance standards.

Emergence of new players 
In the Gulf and India, soaring wealth is a key driver of local wealth managers’ increasing appetite for M&A. The UAE has established itself as a global wealth management hub and a leading destination for millionaires worldwide; it is estimated to have welcomed 6,700 millionaires in 2024, thanks to its attractive tax policies, visa programmes, and economic vitality. Meanwhile, India is experiencing an economic boom, with wealth surging by between 12 and 13 per cent annually since 2019. There are now 334 billionaires in the nation, a 29 per cent increase from 2023. India’s startup ecosystem is now the world’s third-largest, with the third-most unicorns globally, further contributing to wealth creation.

The Gulf’s economic diversification efforts, led by sovereign wealth funds, are also fuelling significant consolidation within the wealth and financial advisory sector as firms require scale to be able to afford the latest technology. The modernisation of regulations surrounding consumer protection, such as the UAE’s BOD-49, as well as digital security, as with the Central Bank of the UAE’s Financial Infrastructure Transformation programme, illustrate this, while sovereign wealth funds, such as Saudi Arabia’s Public Investment Fund (PIF), are investing heavily in financial technology to support the country’s Vision 2030 strategy.

Wealth managers in the Gulf are increasingly engaging in mergers, acquisitions, and joint ventures. Goldman Sachs, Lombard Odier, and Edmond de Rothschild have all extended their presence to the UAE, while Titan Wealth has made its inaugural international acquisition, purchasing Dubai-based wealth manager AHR Group. 

The same can be seen in India, where wealth manager 360 ONE acquired the mutual fund app ET Money for $44 million in 2024 and is now set to establish a joint venture with UBS. This partnership would see UBS taking a 26 per cent stake in the Indian wealth manager, granting the Swiss bank a foothold in India, underscoring the Indian market’s strategic importance.

BlackRock and Jio Financial Services’ announcement of a wealth management joint venture in India in 2024, following a successful asset management venture in 2023, exemplifies the growing interest of global players in partnering with Indian financial advisors. ICICI Securities, Motilal Oswal, and L&T Finance are among other Indian wealth managers that have collaborated with international asset managers.

Beyond consolidation and M&A
While consolidation offers clear advantages, it is not the only path forward for wealth managers and advisors struggling to cope with a challenging and increasingly competitive market. Firms such as Coleman Wealth offer centralised investment propositions, outsourced custody services, enhanced CRM systems and advanced technological tools to help firms enhance their operations and remain competitive with larger players. Increasingly, we are seeing smaller wealth mangers and advisors take advantage of these offerings to keep their independence while still being able to offer a robust suite of services to their clients.

Whichever route wealth managers take, the generational wealth transfer in developed markets and the booming wealth generation in emerging regions and markets, such as India and the Gulf, should ensure a balance between offering robust services and maintaining their personalisation and independence. 

The wealth managers most successful in 2025 will be those that can adapt and commit to client-focused strategies – and consolidation is just one trend that will help managers get there. Whether through M&A or alternative approaches, wealth managers and advisors need to embrace change to capitalise on the abundant opportunities in today’s market.