Edelman Financial Engines
| Company type | Private |
|---|---|
| Industry | Financial services |
| Predecessor | Financial Engines, Edelman Financial Services |
| Founded | 2018 |
| Headquarters | Santa Clara, California , United States |
Area served | United States |
Key people | Jay Shah (CEO) |
| Products | Wealth management, retirement planning, tax planning, investment advisory services |
Number of employees | 1,500 financial professionals (2023) |
Edelman Financial Engines ranks among the foremost American firms specializing in financial planning and investment advisory services, overseeing assets exceeding $270 billion and serving upwards of 1.3 million clients as of December 31, 2023. The company is based in Santa Clara, California, operates through 145 offices, and employs around 1,500 financial professionals.
The firm was established in 2018 following the merger of Financial Engines (founded in 1996) and Edelman Financial Services (founded in 1986). This union brought together deep expertise to offer a wide range of wealth management and retirement planning solutions. Their business approach integrates scalable digital platforms with tailored financial guidance, catering to a diverse clientele that includes individual investors and corporate retirement plans.
Led by CEO Jay Shah, Edelman Financial Engines has grown its presence in the market through both acquisitions and organic expansion, solidifying its position within the financial services sector. The company’s global focus lies in providing cutting-edge investment methodologies and financial planning resources designed to foster long-term growth and improve client results.
Edelman Financial Services
Founded in 1986 by Jean and Ric Edelman, Edelman Financial Services began as a financial advisory practice. In 2005, Sanders Morris Harris Group, a publicly traded wealth management company, acquired a majority interest and later rebranded as Edelman Financial Group in 2011. Ric Edelman was appointed co-CEO alongside George Ball at that time. By 2015, private equity firm Hellman & Friedman secured a controlling interest when the firm managed approximately $15 billion in client assets.
Financial Engines
Financial Engines was created in 1996 by Nobel Prize winner William Sharpe, Stanford Law professor Joseph Grundfest, and attorney Craig W. Johnson. The company introduced its retirement planning software in 1998 and rolled out managed accounts by 2004, surpassing $1 billion in assets under management by the end of that year. In 2015, it acquired The Mutual Fund Store, a registered investment advisor, for $560 million. By 2018, Financial Engines had grown its assets under management to $160 billion, establishing itself as the largest managed account provider within the defined-contribution market. Its proprietary platform combined algorithm-driven investment advice with human advisory services for major clients such as Comcast NBCUniversal and IBM.
Edelman Financial Engines
In 2018, Hellman & Friedman purchased Financial Engines for $3 billion and merged it with Edelman Financial Services to form the largest independent registered investment adviser in the United States, managing $191 billion in assets. Larry Raffone, formerly CEO of Financial Engines, assumed the role of president and CEO of the combined entity, while Ric Edelman took on the position of chairman focused on financial education and investor engagement. The newly formed company operates under the name Edelman Financial Engines, integrating workplace retirement solutions with comprehensive financial planning.
Between 2018 and 2023, Barron's consistently recognized Edelman Financial Engines as the leading registered financial advisory firm nationwide. In 2018, former Department of Labor assistant secretary Phyllis Borzi joined the company’s board.
As reported on December 31, 2023, Edelman Financial Engines managed assets exceeding $270 billion for more than 1.3 million clients, primarily through employer-sponsored 401(k) plans. In March 2021, Warburg Pincus acquired a minority stake in the firm at a valuation of $7.3 billion—a substantial rise of 62% since 2018.
Ric Edelman resigned as chairman in June 2021 but continued contributing as a strategic adviser, board member, and remained the largest individual shareholder. In January 2022, the company launched Everyday Wealth with Soledad O’Brien and Jean Chatzky, a podcast dedicated to financial education; this series concluded in early 2024.
Services
Wealth Management – By January 2020, the firm had a team of 320 financial advisors overseeing close to $40 billion in assets for 92,000 individual clients.
Workplace – As of November 2020, the company managed 401(k) plans for 1.1 million participants across 7,000 organizations, making it the largest provider of managed accounts in the United States and serving more clients than any other independent financial advisory firm. Additionally, it provides Income+, a retirement income solution designed for clients approaching or already in retirement.
Tax Planning – In May 2021, Edelman enhanced its tax planning services through the acquisition of Viridian Advisors, a tax-focused firm based in Washington State, leading to the creation of an internal tax planning division.