Warburg Pincus takes stake in Edelman Financial Engines

Hellman & Friedman, which bought a stake in Edelman in 2015 and combined it with Financial Engines in 2018, will remain majority shareholder.

Private equity firm Warburg Pincus has taken a minority stake in Edelman Financial Engines. The investment, the size of which was not disclosed, values the company at $7.3 billion. The deal is expected to close in the second quarter, the company said in a release.

Hellman & Friedman remains the company’s majority owner. Hellman & Friedman bought a stake in Edelman Financial Services in 2015, purchased Financial Engines for $3.02 billion in 2018 and then merged the two.

Edelman Financial Engines, one of the nation’s largest RIA firms, manages $260 billion.

In 2019, Warburg Pincus took a majority stake in independent broker-dealer Kestra Financial.

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