At the start of 2026, mergers and acquisitions (M&A) and strategic investments remain core tools for alternative asset and wealth managers seeking growth, succession planning, and platform expansion. Deal activity in 2025 reflected a continued evolution in how managers, their founders, and potential investors approached transactions – shaped by valuation discipline, regulatory scrutiny, and increasingly bespoke deal structures.
In this article, we highlight notable asset manager M&A activity in 2025 and share considerations for founders evaluating a potential transaction in 2026.
In Depth
Aligning manager and investor goals
Before engaging in a strategic transaction, clarify your key objectives. Are you seeking liquidity or partial cash-out; access to more resources or a broader distribution platform; funding for a succession plan; or other unique goals (e.g., seeking equity opportunities for employees)? Investors often seek one or more of the following: a financial return on a passive investment, platform expansion and growth, acquisition of talent, or diversification of its business lines. Understanding any potential tensions between your goals and those of investors will help create a smoother, more efficient process.
Choosing the right financial advisor
Selecting the right financial advisor is critical. The best bankers don't just run processes, they understand the asset management landscape, know the buyers, and can position your story effectively. A trusted advisor can help you evaluate timing, identify the right counterparties, and negotiate deal terms that align with your vision.
Involve tax advisors early
Tax structuring is foundational to every asset manager transaction. Involving tax advisors early in the process, and before a term sheet is executed, can prevent a costly renegotiation exercise – or worse (i.e., result in an unviable deal). Once economic terms are documented, it is difficult to revisit them to accommodate a more tax-efficient structure, even if a term sheet is "non-binding."
Investor consent matters, legally and commercially
Investor consent requirements arise under both the Investment Advisers Act of 1940 and your client/fund documents. It is important to understand (i) whether the transaction triggers a change in control or other consent requirements, (ii) if so, whether you need affirmative or negative consent of investors or other third parties, (iii) the right time to engage key investors (as investor relations could make or break the process), and (iv) the potential impact on deal structure or economics if you fail to obtain the requisite consents.
Anticipate portfolio-level regulatory and third-party consent issues
A change of control of the investment manager and/or general partners can also trigger regulatory or other third-party consent requirements at the portfolio company level. Identify these consents early to avoid surprises that could delay, complicate, or jeopardize the closing.
Pick the right partner, not just the right price
Cultural alignment, governance rights, and employee integration are as important as valuation. The "right partner" is one whose vision, distribution capabilities, partnership philosophy, and governance approach complement yours, setting you up for long-term success.
Preparation is everything
The most successful deals start well before a sale process formally begins. It is important to take time to:
- Evaluate your upper-tier ownership agreements to determine if updates and tax planning are necessary
- Evaluate your fund and client governing agreements to understand notice and consent obligations
- Anticipate issues that may affect the structure or timing of a transaction.
Preparation reduces deal friction, accelerates diligence and overall deal timing, and establishes credibility with potential investors.
Timing and market window matter
A firm's assets under management and investment strategy influence when the market will value it most favorably. Timing your process and preparation to align with investor demand and broader market cycles will positively affect the deal outcome.
Deal structures are evolving
Recent marquee transactions reflect the direction of the market: more customized rollover equity, bespoke earnout terms, and governance and economics designed to balance founder liquidity with long-term growth objectives.
A sale doesn't mean retirement
For founders, a sale often marks a new beginning. With a new partner, there is typically increased focus on growth, scale, and integration. Many founders find they work harder post-closing to meet performance targets, drive expansion, and achieve earnouts.
Conclusion
As asset management M&A evolves toward more sophisticated and customized deal structures in 2026, success will depend not only on securing the highest valuation, but also on finding the right partner whose vision, capabilities, and culture align with your long-term growth objectives. For founders and firms ready to engage in these transactions, thorough preparation across tax, regulatory, and operational dimensions – combined with clarity on core objectives – will be the foundation for partnerships that create enduring value beyond the closing date.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
