Edelman Monetary Engines Announces Investment From Warburg Pincus LLC
5 min readBOSTON–(Company WIRE)–Edelman Economic Engines (“the Company” or “firm”), the nation’s major impartial economical preparing and expenditure management firm, along with lead trader Hellman & Friedman, a premier non-public equity company centered on creating big-scale fairness investments in high-high-quality expansion companies, now announced a strategic investment from Warburg Pincus, a preeminent world non-public equity agency concentrated on advancement investing, which will grow to be a minority fairness owner and Michael Martin, Managing Director, will sign up for the Company’s Board of Directors.
The financial commitment values the Firm at $7.3 billion and is predicted to near in the 2nd quarter 2021.
This recapitalization marks a major milestone in satisfying a vision that has prolonged been in the building for the Corporation and its traders. In 2015, Hellman & Friedman’s financial investment in legacy Edelman Fiscal Products and services aided that company come to be the leading unbiased fiscal planning and financial commitment advisor in The united states. That same year, Money Engines began to merge its engineering-based presenting in the place of work with a a lot more detailed, high-touch and advisor-led strategy, and brought Warburg Pincus on as a substantial investor as portion of that transition. In 2018, Hellman & Friedman’s strategic get-personal of Fiscal Engines and merger with Edelman Economic Products and services accelerated that journey, making the best independent RIA in The us, acknowledged three decades in a row by Barron’s. Given that the merger, Edelman Fiscal Engines has ongoing to grow and greatly enhance its assistance supplying, developing AUM by practically $100 billion, though constantly performing in the most effective fascination of its nearly 1.3 million clients. The Company’s solid fiscal functionality in 2020 demonstrated the energy and resiliency of the firm. With the backing of Hellman & Friedman and Warburg Pincus, the Firm enters its upcoming stage of advancement grounded in its unwavering mission to convey far more money assist to the lots of that want and deserve it.
“This new financial commitment from Warburg Pincus along with the ongoing help from Hellman & Friedman demonstrates the abundance of prospect forward for our business enterprise,” commented Larry Raffone, President & Chief Govt Officer, Edelman Money Engines. “Our record development in 2020 developed momentum that has continued into 2021. We are nicely-positioned and psyched to acquire benefit of the prospects in entrance us and to satisfy our long-expression eyesight of serving to additional Us residents meet all their economical objectives.”
“We are extremely proud of the progress that the Edelman Fiscal Engines team has manufactured considering that we merged Edelman Economic Expert services with Financial Engines in 2018, making an unparalleled investment decision advisory company that supplies thousands and thousands with entry to large-good quality, impartial money planning-led information,” commented Allen Thorpe, Husband or wife, Hellman & Friedman. “We are energized to carry on working with Larry and staff as they request to defend and greatly enhance the financial wellbeing of so many Americans, and we glance ahead to partnering with Michael and the Warburg Pincus group. They provide excellent knowledge in the financial expert services field and will be a terrific addition to the Board as we help the Company’s vivid long run alongside one another.”
“We have a solid heritage with Edelman Fiscal Engines and are thrilled by this opportunity to make investments in its ongoing progress in partnership with Hellman & Friedman,” claimed Michael Martin, Managing Director, Warburg Pincus. “We think that the Edelman Monetary Engines enterprise model, which spans place of work retirement strategy guidance and conventional economic organizing and expense management solutions, uniquely positions the agency to assistance tens of millions of Us citizens access their financial ambitions.”
Moelis & Firm LLC acted as guide monetary advisor to Edelman Fiscal Engines. PJT Companions also acted as a money advisor, and Simpson Thacher & Bartlett furnished lawful counsel. Wachtell, Lipton, Rosen & Katz offered authorized counsel to Warburg Pincus.
About Edelman Monetary Engines
Considering that 1986, Edelman Financial Engines has been committed to generally performing in the finest fascination of our consumers. We ended up started on the belief that all American investors – not just the wealthy – are entitled to entry to personalised, complete economic preparing and investment advice. Now, we are America’s top rated impartial fiscal arranging and investment advisor, recognized by Barron’s1, with 150+ workplaces throughout the place and entrusted by much more than 1.2 million consumers to take care of far more than $260 billion in property.2 Our exclusive tactic to serving customers brings together our advanced methodology and proprietary technology with the awareness of a committed individual money planner. Each individual client’s scenario and targets are special, and the potent fusion of higher-tech and large-contact enables Edelman Economical Engines to produce the individual program and economic self esteem that anyone warrants. For much more details make sure you take a look at www.EdelmanFinancialEngines.com.
About Hellman & Friedman
Hellman & Friedman is a preeminent world wide non-public equity company with a exclusive approach targeted on investments in high-good quality development enterprises. H&F seeks to partner with world-course administration groups the place its deep sector experience, very long-phrase orientation, and collaborative partnership method permit organizations to flourish. Given that its founding in 1984, H&F has elevated more than $50 billion of dedicated money, invested in around 90 businesses, and is at this time investing its ninth fund, with $16.5 billion of fully commited capital. Discover a lot more about H&F’s defining expense philosophy and tactic to sustainable outcomes at www.hf.com.
About Warburg Pincus
Warburg Pincus LLC is a primary world wide private equity company centered on development investing. The business has a lot more than $58 billion in private fairness assets less than management. The firm’s active portfolio of a lot more than 195 providers is very diversified by phase, sector, and geography. Warburg Pincus is an skilled associate to management groups seeking to make strong organizations with sustainable worth. Started in 1966, Warburg Pincus has lifted 19 non-public equity cash, which have invested additional than $89 billion in above 920 corporations in much more than 40 international locations. The company is headquartered in New York with workplaces in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more details please visit www.warburgpincus.com.
1 The 2020 America’s Greatest RIA Firms Unbiased Advisory Organization Position issued by Barron’s is qualitative and quantitative, which include belongings managed, know-how investing, workers variety, succession setting up, the sizing and experience of groups, and the regulatory data of the advisors and companies. Companies elect to take part, but do not pay out to be integrated in the ranking. Investor expertise and returns are not regarded. The 2018 ranking refers to Edelman Monetary Companies, LLC, which put together its advisory small business in its entirety with Fiscal Engines Advisors L.L.C. (FEA) in November 2018. For the same study, FEA acquired a precombination ranking of 12th.
2 Info as of 12/31/2020.
© 2021 Edelman Fiscal Engines, LLC. Edelman Money Engines® is a registered trademark of Edelman Financial Engines, LLC. All advisory expert services available through Financial Engines Advisors L.L.C. (FEA), a federally registered expense advisor. Outcomes are not guaranteed.
