Q1 2026 Funds, Trusts, and Corporate Services update: Consolidation continues, driven by compliance scaling and technology investment
M&A activity in the Fund, Trust and Corporate Services sector remains resilient and a top strategic priority. The first quarter of 2026 saw 34 deals completed, above the long-term quarterly average of 32, underpinned by landmark large-cap transactions and continued mid-market platform investment.
AI is dominating board room and investment committee discussions as firms seek out near-term efficiency gains and optimise data management. Firms of all scales, from established players to emerging competitors, are seeking to find AI solutions to automate workflows and manage complex data sets to maintain competitive advantage.
Competition in the market has also driven consolidation, with many large diversified global platforms growing with share across Trust Services, Corporate Services and Fund Services. In this context, European players are increasingly prioritising US expansion to gain access to the world’s largest funds market and achieve ‘global’ multi-jurisdictional status.
By contrast, the Trust Services industry remains relatively fragmented. Financial sponsors are taking an increased interest due to the strong consolidation opportunity, growing global wealth and increasing demand for international trust structures.
Despite the drive for greater global consolidation in the market, the regulatory landscape is going in the other direction, with a divergence of standards across jurisdictions. This is causing friction for the multi-jurisdictional firms while driving demand for value-added advice and resilient structures. Increasing regulatory complexity and cost has also supported the shift to outsourcing middle and back-office functions to third party providers.
Finally, increasing institutional demand for “on chain” solutions, including tokenisation and digital assets that promise greater efficiency and cost reduction potential, has increased the value for highly specialised capabilities in these areas. Traditional players are increasingly seeking to acquire emerging, rapid growth participants with these strengths.
Looking ahead, M&A momentum across the industry is expected to remain supported by investor demand for businesses with diversified international platforms, strong digital infrastructure and multiple routes to market. Firms demonstrating strong organic growth, high-quality client relationships and recurring revenues are likely to command premium valuations, particularly those serving blue-chip or ultra-high-net-worth clients.
While regulatory change, AI adoption and macroeconomic uncertainty may shift investor priorities, businesses that can demonstrate resilience, technological investment and diversified growth are expected to remain attractive to investors.
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