(Reuters) – Private equity firm Warburg Pincus has agreed to acquire a minority stake in Edelman Financial Engines, valuing the U.S. investment advisory services provider at $7.3 billion, including debt, the companies told Reuters on Sunday.
The deal represents a 62% increase in the valuation of Edelman Financial Engines since 2018, when buyout firm Hellman & Friedman created it through the merger of two companies. It underscores the growth of the registered investment adviser (RIA) industry as more Americans seek professional help to invest their savings.
Hellman & Friedman will retain a majority stake in Edelman Financial Engines, the companies said. They did not disclose the exact stake that Warburg Pincus was acquiring, but the private equity firm’s head of financial services, Michael Martin, said in an interview it represented a “mid-to-high teens” percentage equity ownership.
By David French
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