Warburg Pincus acquires stake in Edelman Financial Engines

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

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 US$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.