SEC Releases Data on Broker-Dealers, M&A Activity, and Business Development Companies

By K. Braeden Anderson, Esq.

On June 26, 2025, the SEC’s Division of Economic and Risk Analysis (DERA) published three detailed reports providing updated data and analysis on broker-dealers, mergers and acquisitions (M&A), and business development companies (BDCs). These reports are part of the agency’s ongoing effort to enhance transparency and provide market participants with relevant data to support regulatory and commercial decision-making.

Below is a summary of key takeaways from the new reports and observations based on our experience advising clients in these areas.

Broker-Dealer Activity

DERA’s Broker-Dealer Activity in the United States report analyzes industry trends from 2010 to 2024. Among the most notable findings:

• The number of registered broker-dealers has declined by approximately 30% over the past 14 years.

• Despite this reduction, total industry assets have grown to approximately $6.4 trillion, up by $1.7 trillion.

• These figures reflect continued consolidation in the sector, with a smaller number of firms managing an increasing share of market activity.

This trend underscores what many industry participants have observed anecdotally: the increased regulatory burden and associated compliance costs are contributing to market concentration. While larger institutions are better positioned to absorb these costs, smaller firms may find it increasingly difficult to compete without significant operational scale or niche specialization.

M&A Activity

DERA’s Analysis of Merger & Acquisition Activity provides an overview of recent M&A trends in the U.S. market:

• The average deal size was $3.5 billion; however, the median was significantly lower at $0.5 billion, highlighting the skew introduced by a relatively small number of large transactions.

• Acquirers had average assets of $40 billion (median: $7 billion), while targets had average assets of $5 billion (median: $1 billion).

• Approximately 75% of deals occurred within the same two-digit Standard Industrial Classification (SIC) industry code.

• Roughly one-third of transactions involved counterparties located in the same state.

These findings reflect a market that remains cyclical and closely correlated with broader economic conditions. The concentration of deals within the same industry and geographic regions also suggests a continued emphasis on strategic acquisitions driven by operational fit, regulatory familiarity, and synergies in market coverage.

BDC Reporting Data

The Business Development Company Data Sets released by the SEC include information extracted from public filings, such as:

• Investment schedules

• Detailed financial data

• Summary non-financial disclosures

The data is intended to facilitate independent analysis of BDC activity and financial performance. As BDCs continue to serve a growing role in middle-market finance—particularly in sectors underserved by traditional bank lending—the availability of more granular disclosure data may assist investors, advisers, and policymakers in evaluating the performance and risk profile of these vehicles.

Our View

The release of these datasets is a positive step toward enhanced regulatory transparency. However, the data also reflects broader market shifts that merit attention.

• Broker-dealer consolidation raises important questions regarding market access, competition, and systemic resilience.

• M&A trends confirm that large-cap buyers continue to dominate the market, with smaller companies increasingly becoming targets rather than consolidators.

• BDC disclosures suggest a maturing asset class that may soon warrant closer regulatory scrutiny, particularly around valuation methodologies and liquidity management.

Our firm continues to advise broker-dealers, investment advisers, BDCs, and other financial market participants on regulatory strategy, compliance, and transactional matters. We encourage clients and stakeholders to review the DERA reports in full and reach out with questions about how these developments may impact their business.

About Anderson P.C.
Anderson P.C. is a boutique law firm focused on securities enforcement, regulatory compliance, and internal investigations. We advise clients across the financial services spectrum, including broker-dealers, RIAs, digital asset firms, and investment companies.

For questions or further discussion, contact:

K. Braeden Anderson, Esq.
Managing Partner
braeden@anderpc.com
anderpc.com

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