Edelman Financial Engines, the firm created from the merger of Edelman Financial Services and Financial Engines, has hired Jay Shah, former president and CEO at Personal Capital, as its new CEO.
He will succeed Larry Raffone, who will become chairman of the board and remain a meaningful shareholder. The leadership change is effective Aug. 18.
Raffone, who served as CEO since January 2015, was responsible for growing Financial Engines into the largest RIA in the U.S., with more than $246 billion in assets today. He led the firm through the buildout of Financial Engines’ retail capability and merger with Edelman Financial Services in 2018.
“Having the opportunity to lead EFE through such incredible transformation has been the highlight of my career,” Raffone said in a statement. “I’m thankful for the efforts of my colleagues, grateful for the board’s belief in my work, and proud of everything we have accomplished together. As we continue to evolve for our clients, I am confident in Jay’s leadership and look forward to my new role where I can support Jay and the team as they pursue the firm’s strategy for the future.”
In 2018, Hellman & Friedman bought Financial Engines and merged it with its previously acquired Edelman Financial Services, the mass-affluent-facing RIA giant founded by Ric Edelman.
In 2021, private equity firm giant Warburg Pincus returned to the firm, taking a minority stake in the range of $1 billion to $1.4 billion.
Shah spent the last 13 years of his career building Personal Capital, the online RIA acquired by Empower in 2020. He served as president of the firm following the acquisition.
In the new role, Shah will be responsible for overseeing about 1,500 employees, including more than 650 planners, client service associates and analysts. He’ll focus on adding more clients and planners, and lead the firm’s acquisition strategy going forward. The firm has been active in the RIA M&A space, adding three firms in 2022, including RIA Herrmann & Cooke, Smart Investor and Erman Retirement Advisory.
