The RPA aggregator market may be heading for a shakeout.
After years of aggressive dealmaking and a “buy for scale” mindset, the next phase of consolidation is likely to be far more demanding. Firms will have to show they can do more than acquire assets—they’ll need to prove they can successfully integrate retirement, wealth, benefits and P&C businesses, create real cross-selling opportunities, and turn size into sustainable growth.
For RPA aggregators, the winners may be the firms that can build cohesive cultures, connected technology and a clear strategy for serving clients across the workplace and personal wealth spectrum. With private equity still active, mega-deals becoming more likely and competitive pressure rising, today’s field of 26 aggregators could look dramatically different within just a few years.
The question is no longer simply who can get bigger. It’s who can make the model work.
Read more in Fred Barstein’s latest WealthManagement.com column, “RPA Aggregator Consolidation to Heat Up(opens in new tab).”
