October 21, 2025
Louis Diamond Quoted
By Andrew Cohen
Today’s Edelman Financial Engines is a product of Hellman & Friedman’s deal in 2018 to merge 401(k) account manager Financial Engines with Edelman Financial Services, which Ric Edelman founded with his wife Jean in 1986. Ric Edelman, when reached by InvestmentNews, declined to comment on the recent CEO changes.
“It’s no coincidence that firms like Edelman see frequent CEO turnover,” Louis Diamond, CEO of advisor recruiting firm Diamond Consultants, told InvestmentNews. “When a business is built around a single founder’s personality and vision, it often becomes a true cult of personality, and that makes it incredibly difficult for successors to step in and command the same loyalty from clients, employees, and the market. The playbook that worked under Ric Edelman doesn’t always translate once he’s no longer the face of the firm.”
Private equity impact
Private equity has been a dominant force in this year’s record-breaking pace of M&A activity among RIAs. PE-sponsored investments now total 231 transactions for the year, surpassing the previous record of 215 set in 2024, according to this month’s Echelon Partners’ RIA M&A Deal Report.
“Private equity involvement can make the job even harder. There’s pressure to hit growth targets quickly, prepare for a potential sale, and steer through shifting strategic priorities,” said Diamond. “Combine that with the intense competition and rapid consolidation in wealth management, and the CEO role becomes one of the toughest seats in the industry to succeed in and to stay in.”
