Wave of Multi-Family Office Consolidation Continues as PE Buyers Circle

Three multi-family office platforms have been acquired in the past quarter, continuing a consolidation wave that has drawn private equity sponsors betting on recurring fee revenue and durable ultra-high-net-worth client relationships.

Sponsors including Merchant Investment Management, Wealth Partners Capital Group and Kudu Investment Management have all been active acquirers, typically taking minority or majority equity stakes rather than outright ownership.

Valuation trend

Multi-family office platforms with more than $5 billion in assets under advisement are commanding valuations of 10 to 14 times EBITDA in recent transactions, up from 7 to 9 times just three years ago.