Hellman & Friedman will take majority stake in financial planning firm; founder and CEO Ric Edelman remains largest individual shareholder.
Private equity firm Hellman & Friedman said Monday it has acquired a majority stake in financial planning firm Edelman Financial Services.
The New York-based advisory firm, which has $14.4 billion in assets under management according to its latest Form ADV, will still be owned in part by Lee Equity Partners, the previous majority owner, as well as founder and CEO Ric Edelman and his senior management team. Mr. Edelman will remain the largest individual shareholder.
Terms of the deal were not disclosed.
Mr. Edelman said the move will make the firm stronger, provide stability and a clear direction for the firm, which has more than 28,000 clients and 41 offices across the country and online.
“Our goal is to dramatically increase the firm's brand so that we can reach and provide more Americans with our financial education,” Mr. Edelman said.
With resources from Hellman & Friedman, Mr. Edelman said his firm will be able to add more advisers and offices, as well as consider acquisitions. Hellman & Friedman, based in San Francisco, New York and London, focuses on the financial services and technology sectors.
“We are going to be able to grow very aggressively in the future,” Mr. Edelman said.
Mr. Edelman said previously he would be stepping down as chief executive and in the news release, Hellman & Friedman said it would continue the search for his replacement. He will take the role of executive chairman.