Hellman & Friedman is taking a majority stake in the $15 billion financial planning firm Edelman Financial Services, said Julia Kosygina, a Hellman & Friedman spokeswoman.
Hellman & Friedman declined to disclose terms of the deal or any other information not disclosed in its press release.
Edelman also provides investment management services for 401(k) plans and institutional investors including endowments, non-profits and small- to medium-sized businesses. Hellman & Friedman is making the investment from the $8.8 billion Hellman & Friedman Capital Partners VII, which closed in 2009. Investors in the seventh fund include the $13.9 billion Los Angeles City Employees' Retirement System and $27.6 billion Pennsylvania State Employees' Retirement System, Harrisburg.
Hellman & Friedman will own the business with Edelman's senior management team and current majority owner, private equity firm Lee Equity Partners. The senior management team and Lee Equity Partners will retain “meaningful equity ownership” of Edelman, the press release said.
Hellman & Friedman also will assist in Edelman's current search for a new CEO to replace Ric Edelman, who will take on the role of executive chairman.
