Private equity firm Warburg Pincus will purchase a minority stake in managed account provider Edelman Financial Engines.
The terms of the deal, which is expected to close in the second quarter, are not being disclosed, a Edelman Financial Engines spokeswoman said. A news release Monday noted the investment values the company at $7.3 billion.
Michael Martin, managing director at Warburg Pincus, will join Edelman Financial Services' board of directors, the release said.
Hellman & Friedman remains the majority owner, having acquired Financial Engines in a $2.8 billion deal in 2018. The deal also resulted in Financial Engines' merger with Edelman Financial Services, a financial planning firm in which Hellman & Friedman owned a majority stake. The private equity money manager purchased the majority stake in Edelman in 2015.
"This new investment from Warburg Pincus alongside the continued support from Hellman & Friedman demonstrates the abundance of opportunity ahead for our business," said Larry Raffone, Edelman Financial Engines' president and CEO, in the news release.
Edelman Financial Engines has more than $260 billion in assets under management.