Ten M&A deals accounting for $6.1 billion in assets under management took place in the RIA industry in the third quarter, as the number of deals rose from the prior quarter but the volume of assets under management switching hands fell, the latest data from Schwab Advisor Services shows.

So far this year 35 deals have taken place – a figure which makes it look likely that the total number of deals for this year will be lower than in 2011 and 2010, when 57 and 70 deals were completed respectively. However, in terms of the assets under management that those deals represent, the year-to-date total for 2012, at $42.3 billion, is already nearly level with the full-year 2011 total of $43.9 billion.

It was national acquiring firms bolstering their businesses in the third quarter, as they became by far the dominant buyer of RIA firms, representing the buying firm in 54 per cent of deals. The second biggest buyers were RIA firms, in 20 per cent of deals, followed by “other firms” (17 per cent) and regional banks (9 per cent).

“While national acquiring firms remain dominant players, RIAs as acquirers have been sitting on the sidelines waiting for the right opportunity," said Jon Beatty, senior vice president, sales and relationship management, Schwab Advisor Services.

Notwithstanding a few year-on-year dips, the proportion of deals where national acquiring firms are the buyer has risen fairly steadily over the years for which Schwab has been tracking the sector – from 26 per cent in 2004 to 54 per cent today. Conversely, cases where national banks are the buyer have fallen from 37 per cent in 2004 to 0 per cent today. The proportion of deals where an RIA firm is the buyer – although down at 20 per cent so far this year – has generally risen over the period, from 16 per cent in 2004 to 44 per cent last year.