Ric Edelman's RIA empire to merge with legacy The Mutual Fund Stores in $3-billion deal that takes Financial Engines private

Hellman & Friedman stake the eye-popping sum in cash to outright own an RIA with nearly $195 billion of AUM including robo-advised 401(k) assets

Author Brooke Southall April 30, 2018 at 11:57 PM

4 Comments

Ric Edelman: It's all additive.

Robo-Advisors

Ric Edelman

Dan Seivert

Tim Welsh

Peter Mallouk

Larry Raffone

Nexus Strategy

ECHELON Partners

Financial Engines

The Mutual Fund Store

Hellman & Friedman

Creative Planning

Edelman Financial Services

Jeff Spears

May 1, 2018 — 6:33 PM

The best evangelists are able to adapt ancient scrolls to the current realities. This combination should help.

Brian Murphy

May 1, 2018 — 7:32 PM

Ouch! This is gonna hurt in a few years...just sayin'.

Aidan Yeaw

May 1, 2018 — 10:16 PM

As a former FE employee, this is surprising news. This deal seems to move FE even further away from its pioneering "robo" roots. With 60% of FE's business being sub-advised for the likes of Voya, Vanguard, Empower and Alight (formerly, Aon Hewitt) FE doesn't "own" the relationships with plan sponsors or participants, so trying to coax IRA rollover assets may not sit well with their current clients. It will be interesting to see if any of them terminate their relationships with FE now that this deal has been announced.

Stephen Winks

May 3, 2018 — 2:28 PM

Given the new SEC suitability Standard which leaves no place for advisors within a brokerage format, look for the new Edelman to advance innovations and modernity in advisory services not possible within a brokerage format. The filling of this leadership vacuum left by brokeratge will drive significant market share to Edelman from our best advisors who aredriven by professional imperative in advisory services. This will preempt conventional brokerage affording an unprecidented level of investment and administrative counsel at far lower cost while better compensating the advisor. SCW

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Mentioned in this article:

Financial Engines
401k Plan Consultant

Nexus Strategy
Consulting Firm
Top Executive: Timothy D. Welsh

Creative Planning
RIA Serving Other RIAs
Top Executive: Peter Mallouk, JD, MBA, CFP®