M&A activity in the UK investment sector is accelerating a structural shift away from privately owned, local businesses toward institutionally backed regional and national groups, often funded by overseas capital, according to MarshBerry.
The advisory firm said the trend is being reinforced by stronger growth at firms with access to capital and the valuations being achieved for shareholders on exit.
MarshBerry framed the shift as a long-term transformation that owners weighing succession or exit timing need to factor into their planning.
The total value of UK investment sector deals above £5 million reached £19.7 billion in 2025, an all-time high and a 116% increase on the prior year, MarshBerry data shows.
Private equity-led transactions, including those backed by overseas funds, accounted for £16.8 billion, up 113%. Deals involving overseas parties, many PE-backed, rose 139% to £17.9 billion, while the average deal value climbed 238% to £303 million.
The pattern mirrors activity in adjacent financial services markets. A recent KPMG review of 15 UK life insurers found Solvency II coverage ratios held between 170% and 250% despite a record wave of ownership changes.
These consolidations include Aviva closing its £3.7 billion takeover of Direct Line Group in July 2025, Brookfield Wealth Solutions completing its £2.4 billion purchase of Just Group in April 2026, and Athora Group sealing a £5.7 billion deal for Pension Insurance Corporation in March 2026.
Among service providers, MarshBerry said the dominant theme outside bolt-on consolidation is the broadening of propositions, with technology-led firms adding services and service providers acquiring complementary skills.
In the pensions segment, larger players are using M&A to strengthen positions and move into adjacent market segments.
Long-only asset management continues to see steady deal flow, including the public offer for M&G, alongside minority stakes being taken in specialist alternative managers by international strategics.
MarshBerry said opportunities in UK wealth management have drawn international funds and newly created PE-funded consolidation vehicles into the market over the past year. PE influence now extends to employee benefits, pension consulting and adviser service providers.
The advisory firm noted that regulatory pressure, rising costs and technology adoption are also prompting owners to revisit growth and profitability strategies, meaning PE is not the sole driver of change in the investment sector.
As scale builds, more UK firms are becoming relevant to North American strategic acquirers and PE funds, including wealth consolidators, multi-family offices and specialist product providers, MarshBerry said.
Owner-managed businesses remain the largest seller category, consistent with owner age demographics and consolidator appetite. The result is a steady transfer of privately held firms into larger organisations pursuing buy-and-build strategies.
MarshBerry's analysis of 770 UK wealth managers employing 10 or more staff found 91% remain under private ownership, down from 92% a year earlier. Some 84 businesses, or 11%, employed 50 or more staff, while 43 groups were PE-backed.
Headcount at PE-backed businesses grew 22% over the reporting period, MarshBerry said, with established consolidators such as Shackleton and Wren Sterling continuing to acquire and new PE-funded platforms entering the market, signalling further M&A runway in the investment market.
