Independent advisory firm Edelman Financial Engines announced Wednesday that Jay Shah will become the firm’s chief executive as of Aug. 18. Shah, formerly CEO of Personal Capital, will replace Larry Raffone, who will transition to become chairman of the firm's board.
As CEO, Shah will lead a nationwide workforce with approximately 1,500 employees, including more than 650 planners, client service associates and analysts. The firm, which is backed by private equity firms Hellman & Friedman and Warburg Pincus, boasts over 1.3 million clients and more than $246 billion in assets.
Since April 2017, Shah has served as CEO of Personal Capital, a robo and human advice firm, and guided its acquisition by retirement plan record keeper Empower.
“Jay is a proven leader who brings an incredible depth of new skills and experiences to build on Larry’s legacy as we accelerate our next phase of growth,” said Allen Thorpe, partner at Hellman & Friedman.
“I’m thrilled to join a firm that is committed to always doing the right thing for its clients," Shah said. "And we have an incredible opportunity to deliver world-class face-to-face, phone-based and digital financial planning experiences to help more people lead better lives — from their first paycheck through retirement.”
Raffone had been with Financial Engines for more than two decades. He had served as president since November 2012, and chief executive and board member since January 2015. Raffone led Financial Engines through the build-out of the Financial Engines retail capability, and the merger with Edelman Financial Services in 2018, which resulted in what is now Edelman Financial Engines.
“For the past two decades, Larry has been an integral part of the growth and success of the firm, helping us to become the top investment advisory business that today provides millions of Americans with access to high-quality, unbiased financial planning-led advice,” Thorpe said.
Ric Edelman, board member and founder of legacy Edelman Financial Services, called the announcement “very exciting news for the firm, its planners and staff, and clients.”
“Jay not only understands the opportunity that exists to provide more workplace employees with access to broader financial planning services, he has a proven track record of providing financial planners with innovative technology so they can deliver high-touch services to their clients, enabling them to transform their financial lives,” Edelman said.
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