Episode summary
401(k) Real Talk Episode 213: October 21, 2026
Summary
Fred Barstein says MarshBerry’s latest data points to a stronger-than-expected advisor M&A market, with 294 deals year-to-date and the possibility of topping 400 in 2026. He argues that private equity buyers are still driving activity, larger RIAs are drawing more attention, and sellers are motivated by succession planning and the need to fund growth through technology and talent.
He also warns that CITs are getting more attention because of cost, but many advisors and plan sponsors do not understand the regulatory and fiduciary differences versus mutual funds. Fred says the DOL is actively investigating these products, so advisors need to explain both their benefits and their risks in plain language as adoption grows.
On managed accounts, he says their real value comes from personalization, which depends on collecting more participant data and improving engagement. He closes by highlighting the opportunity for insurance brokers in small-business retirement plans as state mandates expand coverage, and he frames those mandates as a “butterfly effect” that could reshape the defined contribution industry.
Key takeaways
- Fred Barstein says MarshBerry reported 294 M&A deals year-to-date, the highest on record, with 2026 potentially topping 400 deals.
- Private equity buyers accounted for 72% of transactions, with Wealth Enhancement Group, Hightower, and Carson leading the market.
- Fred Barstein says CIT adoption is being driven by cost, but advisors must explain the fiduciary and regulatory differences from mutual funds.
- Managed accounts are most valuable, he argues, when they use participant data, household context, and engagement to personalize retirement strategies.
- Fred Barstein sees a major small-business retirement opportunity for insurance brokers as state mandates increase plan demand.
Notable quotes
“MarshBerry is reporting a record number of deals that could top 400 in 2026”
“PE buyers, with 72% of the transactions, continue to dominate, led by Wealth Enhancement Group, Hightower, and Carson”
“the real value of managed accounts is their ability to provide personalized investment strategies”
“the butterfly effect introduced by MIT meteorologist Edward Lorenz postulates that small events that are part of an integrated ecosystem could have large effects”
How the episode opens
Greetings and a warm welcome to this week's edition of 401k Rail Talk. This is Fred Barstein, contributing editor of wealth management's RPA omni channel and CEO of TRAU, TPSU, and 401kTV. I review all of this week's stories and select the most important and interesting ones, providing open, honest, and candid discussion you will not get anywhere else.
So, let's get real. First story, contrary to a Devoe report of a downturn in advisor M&A activity in Q3, MarshBerry is reporting a record number of deals that could top 400 in 2026. Year-to-date, MarshBerry reported that there were 294 deals, which is the highest on record.
PE buyers, with 72% of the transactions, continue to dominate, led by Wealth Enhancement Group, Hightower, and Carson. Larger RIAs are attracting more attention, with 17% of the deals over 5 billion. Devoe suggested that demand was waning due to market volatility and uncertainty, but the MarshBerry report indicates values will continue to be robust.
Advisors are driven to sell for succession planning and to accelerate growth, which requires expanded capabilities and investments in tech and talent. Meanwhile, insurance brokerages are backing off buying RIAs with wealth firms filling in, looking to leverage aging participants that need retirement income planning. Next story, there seems to be a lemmings call to CITs driven by cost, but there are major differences from mutual funds that few advisors and even fewer plan sponsors understand.
Not only are there different regulators, but the trustee must act as a fiduciary and manage conflicts. The reality of these are quite different. Will CITs be the next target of lawsuits?
The DOL recently filed suit and is actively investigating them. Advisors need to educate their clients about the value and challenges with CITs in plain language as these investments grow.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ria demand
- cit regulations
- managed accounts personalization
- 401k state mandates
- private markets in db plans
Companies and tickers mentioned
- GOOGL
- GOOG
- Marshberry Wealth Advisory
- YouTube
Watch the episode
Watch “401(k) Real Talk Episode 213: October 21, 2026” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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