01.05.26

US Asset Managers Break M&A Spending Record

by: Sun Yu

U.S. asset managers spent a record $38 billion on mergers and acquisitions in 2025, more than double the previous year, as consolidation in the industry accelerated. Deal volume reached 378 transactions, the highest since records began in 1980, driven by margin pressure, rising costs and client demand for broader investment offerings. Lower interest rates also reduced financing costs and encouraged dealmaking. Firms pursued M&A to gain scale and expand into areas such as alternative assets and active exchange-traded funds. Despite the boom, past deals have delivered mixed results, with integration challenges and uncertain improvements in profitability.

Read the full article on Financial Times