Steward Partners CEO: RIA M&A may be 10x higher

Steward Partners Chief Executive Jim Gold estimates merger-and-acquisition activity among registered investment advisors could be up to ten times higher than industry tallies. He attributes the discrepancy to small deals between solo advisers that typically do not involve investment banks and therefore go unreported.

Industry trackers logged 142 RIA deals in the first quarter and forecasters project about 475 transactions for 2026, up from 466 in 2025. Steward Partners has completed five M&A deals so far this year.

Gold noted many smaller transactions occur when two solo advisers combine practices without engaging a banker. “Whatever numbers we see on M&A publicly, it’s probably 10 times that,” he argued.

Founded in 2013 by former Morgan Stanley and Smith Barney advisers, Steward Partners is based in Stamford, Connecticut. The firm reports about $50 billion in client assets, having added roughly $20 billion over the past two years. It employs nearly 300 advisers who hold ownership stakes.

In 2023 Steward acquired Freedom Street Partners and appointed Scott Danner to run a dedicated M&A unit. Gold described a pattern in which recruiting conversations convert to sales as senior advisers consider retirement plans. The firm estimates roughly 60% of new affiliations come through M&A and 40% through recruiting.

Steward’s acquisition model emphasizes keeping acquired teams and client relationships intact. Gold acknowledged that those deals often involve lower upfront payouts and higher ongoing compensation obligations, while potentially delivering longer-term gains for the combined firm’s earnings before interest, taxes, depreciation and amortization and preserving continuity for clients and staff.

Private capital has supported Steward’s expansion. In December the firm received a $475 million investment from a subsidiary of Ares Management. Other investors include Cynosure Group and The Pritzker Organization. Steward left an office of supervisory jurisdiction arrangement with Raymond James in 2022, established its own broker-dealer and continues to use Raymond James as one of several custodians.

Private equity investors frequently point out operational weaknesses sellers may overlook, Gold noted. He offered a comparison:

Think of this like a house. You can’t just throw your house on the market. They’re going to go, ‘Your kitchen’s old, and the bathroom, and your back porch is falling off.’ You know what’s wrong with your business? Fix it first, and then try to sell.

On technology, Gold predicts artificial intelligence and automation will move more mainstream, lower-balance clients to do-it-yourself options and shrink the traditional entry-level advisory market. He forecasts larger, more sophisticated teams will capture a greater share of high-net-worth work and estimates about 25% of current advisers may leave the business as workflows and client behavior change.

Gold advised advisers preparing to sell to evaluate offers beyond price, recommending attention to compensation arrangements, client continuity and how a buyer will run the practice.