Edelman Financial Engines, the independent RIA firm that was created through the combination of Edelman Financial Services and Financial Engines, has acquired New England Pension Plans Systems, a full-service retirement plan consulting firm and its affiliated RIA New England Investment Consultants. The Providence, R.I.-headquartered firms manage a combined $1.5 billion for more than 500 clients, including individuals, trusts, estates and charitable organizations.
The deal represents Edelman's largest since launching its current M&A strategy in 2021; that was around the time the RIA recapitalized with an investment from private equity giant Warburg Pincus that valued the investment advisory firm at $7.3 billion.
The acquisition also beefs up the firm's retirement plan consulting capabilities to small businesses, which it has been building over the last several years. Last year, for instance, the firm acquired Smart Investor, a Roseville, Calif.-based RIA with small retirement plan capabilities.
“As we continue to grow both organically and through acquisitions, we are seeing more demand from small business owners seeking advice on managing their companies’ retirement plans,” said Suzanne van Staveren, executive vice president, CFO and COO at Edelman Financial Engines, in a statement. “The addition of NEPPS adds to the strong existing foundation we have in providing the workplace with personalized retirement advice at scale.”
Also last year, the firm launched a new workplace platform, Momentum by Edelman Financial Engines, meant to serve as a bridge across its 401(k) managed accounts and investment advisory services with a suite of capabilities to help employees with their broader financial wellness needs. The firm hopes the portal will serve as a client acquisition pipeline.
In November, Edelman filed a lawsuit against competitor Mariner Wealth Advisors, accusing the RIA of “flagrant and ongoing efforts” to steal Edelman secrets and clients, interfere with contracts and business expectations, defame the firm’s reputation and “steal the fruits of “Edelman’s multimillion dollar investments in marketing and client goodwill.”
Mariner fired back this week, accusing EFE of a “nearly three-year campaign to unlawfully stifle fair competition in the investment advisory services industry.”
Edelman Financial Engines now manages more than $245 billion in assets.
