The Pulse of UK Wealth Management Sector

Trends, Deals, and Drivers Shaping UK Wealth

The UK wealth management sector has entered 2026 not just in a state of flux, but in a state of fundamental restructuring. The “buy-and-build” frenzy of the early 2020s has matured into a high-stakes race for technological dominance. As we kick off Q1, the narrative is clear: if you aren’t an aggregator, you are likely an acquisition target. Margin compression is the primary catalyst.

Between the FCA’s relentless focus on Consumer Duty and the rising margin compression, mid-tier firms (£5bn–£15bn AUM) are finding that “independence” is becoming an expensive luxury.

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Dealflow & Valuations

Valuation benchmarks have remained remarkably resilient despite the cost of capital. We are seeing a bifurcation in pricing based on how a firm generates its revenue.

Current Valuation Benchmarks

• Recurring Revenue Multiples: For smaller, retirement-led IFA sales, the market is currently settling at 4.0x to 4.2x recurring income. This is near a seven-year high, driven by a shortage of “clean” high-quality firms.

• EBITDA Multiples: Larger, scalable platforms are commanding between 8x and 11x EBITDA.

• The “AI Premium”: Buyers may be willing to apply a 0.5x–1.0x multiple premium to firms that can demonstrate “AI-readiness”, specifically those with clean, structured data sets that can be easily integrated into with proprietary AI models.

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Actively Hunting

Here are the 5 most active consolidators hunting for targets:

1. Perspective Financial Group

Backed by US-based private equity firm Charlesbank Capital Partners, Perspective is currently the most prolific “volume” buyer in the UK. They are targeting established regional IFAs with high-quality, long-term client relationships.

• Recent Momentum: Completed nearly 20 acquisitions in 2025 alone, pushing their AUM past £11 billion. Overall, they have done close to 120 acquisitions.

• Strategy: They prefer a “hub and spoke” model, acquiring mid-sized firms to act as regional offices and then bolting on smaller one-man bands nearby.

2. Titan Wealth

Titan is the industry’s “Vertical Integration” specialist. Backed by Parthenon Capital, they don’t just want to manage assets; they want to own the platform, the advice, and the custody.

• They are moving beyond traditional IFA firms and acquiring international advice groups (e.g., Blacktower Group) and DFM-heavy businesses.

• Unique Angle: They are actively looking for firms that can help them scale their Jersey and international offshore capabilities, positioning themselves for HNW clients who want global tax mobility.

3. Finli Group

Founded by former Quilter executives and backed by JC Flowers & Co, Finli has become a primary destination for advisors seeking a “safe pair of hands” for their succession. Specifically targeting “retirement-ready” principals who want a clean exit without abandoning their clients to a call-center model.

• Recent Momentum: Their “takeover drive” in late 2025 added over £2 billion in client assets in a single quarter.

• Strategy: They focus heavily on cultural alignment, often surveying a target’s planners before the deal closes to ensure a low-friction integration.

4. Söderberg & Partners

The Swedish giant has entered the UK market with a massive war chest and a different philosophy: Partial Equity.

• The Hunt: They are not always looking for 100% buyouts. They often take 25% to 50% stakes in successful, growing firms like Active Financial Planners.

• Strategy: This “partnership model” attracts younger principals who aren’t ready to retire but want capital to grow their own firms using Söderberg’s tech platform.

5. Radiant Financial Group

Backed by Apiary Capital, Radiant is the “Quality over Quantity” buyer, focusing on firms with deep expertise in complex financial planning. They are aggressively expanding into Scotland and Northern England.

• Recent Momentum: Their 2025 acquisition of Seven Bridges and two major Scottish IFAs signaled their intent to be a national powerhouse.

• Strategy: They prioritize firms with a high ratio of Chartered Financial Planners, aiming to position the group as a premium, high-advice boutique at a national scale.

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Policy Headwinds Reshaping Capital Flows

Recent UK government policy changes have transformed fiscal headwinds into powerful drivers of behaviour, reshaping how capital is structured, allocated, and advised upon.

• The abolition of the non-dom regime in April 2025 has forced a shift from offshore deferral to complex onshoring and restructuring, fundamentally changing HNW advice.

• The Temporary Repatriation Facility (TRF) has triggered a multi-billion-pound liquidity event, pulling offshore capital into UK AUM via FICs and tax wrappers.

• The Autumn Budget 2025 has increased the tax cost of dividends, savings, property, and cash holdings, forcing advisors to prioritise tax-efficient structuring and asset location over simple investment selection.

• Higher dividend and savings taxes are driving flows into offshore funds and corporate structures, while property surcharges are accelerating gifting and incorporation.

• Cuts to Cash ISA allowances are creating a structural tailwind for Stocks & Shares ISAs and equity exposure.

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Outlook & Predictions for 2026

As we look toward the rest of the year, expect three dominant themes to play out:

1. The Rise of the “Vertical Integrator”: We predict that 2026 will be the year of margin reclamation. Firms like Titan Wealth and Quilter will move to own the entire value chain- advice, platform, and asset management to eliminate third-party leakage.

2. The “Mass Affluent” Gold Rush: Following the FCA’s final rules on Targeted Support, major banks such as Lloyds, Barclays, JP Morgan and NatWest are moving to capture the UK’s underserved Mass Affluent segment. This demographic has been largely priced out of traditional wealth management, creating a substantial advice gap. Banks and new entrants are rushing to offer scaled, accessible advisory solutions to meet growing demand. The resulting “Mass Affluent gold rush” is driving rapid product innovation and competition in the UK advisory market.

3. Interest Rate Tailwinds: With the Bank of England expected to cut rates toward 3.25% by summer 2026, the cost of acquisition debt will fall. This could spark a “second wave” of mid-market M&A activity in H2 2026.

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The Deal to Watch Out for in 2026

A high‑stakes takeover battle is unfolding for Evelyn Partners - one of the UK’s largest wealth managers with ~£64 billion in assets, with major banks including Barclays and NatWest Group advancing in the auction process alongside interest from Lloyds and Royal Bank of Canada for a deal potentially valuing the firm at around £2.5 billion.

This deal is a game changer because Evelyn Partners offers a rare combination of scale, fee‑based recurring revenue, and a strong presence across both affluent and mass affluent clients- something few UK wealth managers can match.

The winner will gain a significant foothold in the UK wealth market, unlocking immediate scale, recurring revenue, and cross-selling opportunities. This will intensify competition, forcing rivals to consolidate or innovate and accelerating the transformation of the advisory industry.

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The Bottom Line

2026 is a turning point for UK wealth management. Scale, efficiency, and strategic acquisitions will define winners. Firms capturing the Mass Affluent, high-quality recurring revenue, and operational synergies will command premium valuations, while laggards face consolidation.

The future favors the bold, the fast, and the strategically integrated; a striking irony for an industry long seen as conservative and deliberate.