Edelman Financial Engines has announced a equity ownership program with a $175 million equity distribution to the firm's financial planners.
The firm said that it will also introduce a discretionary co-investment option for all planners later this year.
"The expanded equity program positions all current and future financial planners at EFE as owners, underscoring the firm's longstanding reputation that those guiding clients' financial lives should share directly in the value they help create," Edelman said Monday in a statement.
Edelman has "championed a mission of bringing personalized, holistic financial advice to the broadest, yet neglected, segment of investors: the mass affluent," the firm said.
"Our vision for the future of financial planning remains human-driven, technology-aided, and entirely client-centered," said Ralph Haberli, president and CEO of Edelman Financial Engines. "Through this $175 million initial investment, we are ensuring that our talented, mission-driven professionals continue to benefit from their hard work and dedication as owners of our business, and we are committed to fostering additional opportunities for planners to build equity in alignment with our future growth and the continued success of our clients."
As the financial planning profession continues to evolve, Edelman "is committed to maintaining its role as the firm best positioned to combine scale, technology, and human expertise for the benefit of the client," the firm said, adding that the "$175 million investment — and positioning all its planners as owners in the firm — extends that commitment, ensuring EFE is the best destination for planners seeking a home for their career."
In January, Edelman Financial Engines announced it had moved onto Orion's wealth management technology platform. Matt George, senior vice president and head of product at Edelman Financial Engines, said then that EFE is now "fully onboarded" to Orion.
The firm also notes that it has "built specialized expertise across tax strategy, estate planning, and insurance, equipping planners with the ability to bring deeper insights and solutions to complex client needs."
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