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Edelman Financial Engines: Leading Fee-Based Financial Advisory Firm

Learn about the history and growth of Edelman Financial Engines, a leading fee-based financial advisory firm with a national presence. Founded in 1987, the firm has evolved through various phases and is dedicated to servicing retirement plans and building a prosperous future for its clients.

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Edelman Financial Engines: Leading Fee-Based Financial Advisory Firm

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  1. Edelman Financial Engines:Servicing Retirement Plans & Building a Leading Fee-Based Financial Advisory Firm with a Growing National Presence Tiburon Research September 23, 2019

  2. Edelman Financial Engines Comments • Founded in 1987 • Founded as Edelman Financial Services • Founded by Ric & Jean Edelman • Based in Boston, MA • 442 employees • $239.0 million revenues • $156.4 million expenses • $44.9 pre-tax earnings • $55.8 million adjusted EBITDA • $30.0 million net profits • $25.0 million adjusted net profits • $30.0 million net profits attributable to common shareholders • Chairman: Alan Thorpe • CEO: Larry Raffone • Privately owned • Web site: www.financialengines.com Source: 8/12/14 Securities & Exchange Commission Web Site; 8/11/14 Business Week Web Site; 5/14/13 Business Week Web Site; 5/9/13 San Francisco Chronicle;12/31/12 Edelman Financial Engines Annual Report;10/12 Edelman Financial Engines Advisors ADV Form;4/12/11 Yahoo Finance Web Site; 3/22/11 Google News Alerts; 3/19/11 Google News Alerts; 1/6/11 Google News Alerts; Tiburon Research & Analysis

  3. Edelman Financial Engines was Founded in 1997 and Has Subsequently Evolved through its Independent, Sanders Morris Harris Group, Lee Equity Partners, & Hellman & Friedman Phases Independent Phase Sanders Morris Harris Group Phase Lee Equity Partners Phase Hellman & Friedman Phase Edelman Financial EnginesHistory Edelman Financial Services Founded Edelman Financial Engines Today Approximate Dates: 1987 1988 - 2004 2005 - 2011 2012 - 2014 2015 - 2019 2019 Key Steps: • 1987: Edelman Financial Services founded • 1990: Ed Moore joined • 1992: Ric Edelman launched the Ric Edelman show on WMAL-AM radio • 1996: Ric Edelman published The Truth About Money • 1996: Financial Engines founded • 1996: The Mutual Fund Store founded • 1997: Jeff Maggioncalda joined • 1998: Raised second round of venture capital • 1998: Launched online advice business • 1998: Ric Edelman published second edition of The Truth About Money • 1998: Lesley Roberts joined • 1998: Adam Bold started radio program • 1999: Ric Edelman published The New Rules of Money • 1999: Ric Edelman given honorary doctorate by Rowan University • 1999: Raymond Sims joined • 2000: Opened second office in Saint Louis, MO • 2001: Ric Edelman published Ordinary People, Extraordinary Wealth • 2001: Ric Edelman named entrepreneur of the year (Washington, DC region) by Ernst & Young • 2001: Shifted to enterprise model • 2001: Larry Raffone joined • 2003: Ric Edelman published What You Need to Know • 2003: Ric Edelman published Discover the Wealth Within You • 2003: Listed as great place to work by Washington Magazine • 2003-2004: FTV Capital helped revise strategy • 2003: Paul Koontz became chairman • 2004: Launched professional management business • 2004-2012: Ric Edelman listed on Barron’s top 100 financial advisors list • 2004: Ric Edelman published third edition of The Truth About Money • 2004: Ric Edelman inducted into Financial Advisor Hall of Fame by Research Magazine • 2004: Ric Edelman listed on Registered Rep’s America's Top 50 Brokers list • 2004: Christine Cataldo joined • 2005: Sanders Morris Harris Group acquired a 51% stake in Edelman Financial Services • 2005: Converted its business model to fee-only • 2005: Listed as great place to work by Washington Magazine • 2006: Christopher Jones joined • 2006: Anne Cappel joined • 2006: Business boosted by Pension Protection Act • 2006: Raised series A venture capital from Summit Partners • 2006-2007: Ric Edelman named among The Winner’s Circle’s top 100 financial advisors • 2007: Shifted custody from Royal Alliance to TD Ameritrade • 2007: Ric Edelman published The Lies About Money • 2007: Eraine Parker joined • 2007: Listed as great place to work by Washington Magazine • 2007-2010: Listed on Inc. Magazine’s 5,000 list of fastest growing private companies • 2008: Sanders Morris Harris Group increased its stake in Edelman Financial Services to 76% • 2008-2010: Listed as #1 in client relationships by Wealth Manager Magazine • 2009-2010: Ric Edelman named number one independent advisor by Barron’s • 2009: Began national expansion plan by opening six offices in the New York, NY metropolitan area • 2009: Ric Edelman published Rescue Your Money • 2010: Ric Edelman published fourth edition of The Truth About Money • 2010: Reincorporated in Delaware • 2010: Went public • 2010: Listed as #3 in assets under management by Wealth Manager Magazine • 2011: Introduced Income + • 2011: Debra Babbit joined • 2011: Ric Edelman named co-CEO with George Ball • 2011: Ric Edelman launched PBS television show called The Truth About Money with Ric Edelman • 2011: Rene Chaze joined • 2011: Joe Bottazzi joined • 2011: Steve Cordill resigned • 2011: Celebrated fifteenth anniversary • 2011: Raised private equity from Warburg Pincus • 2011: Adam Bord became Chairman & John Bunch became CEO • 2011: Listed as #3 in discretionary client assets under management by Investment News • 2012: The Edelman Financial Group went private by selling stake to Lee Equity Partners • 2012: George Ball became chairman and Ric Edelman became sole CEO • 2012 Moved headquarters from Houston, TX to Fairfax, VA • 2012: Ric Edelman named number one independent advisor by Barron’s • 2012: Ric Edelman named the #1 most influential financial advisor in America by RIA Biz • 2012: Inside Personal Finance newsletter received award for excellence from APEX • 2012: Ric Edelman radio show ranked #2 most important weekend only talk radio show by Talkers magazine • 2012: Ric Edelman named one of nine advisors with vast Twitter followings by Financial Planning • 2012: Ric Edelman celebrated twenty years on radio • 2012: Introduced Total Retirement Advice • 2012: Introduced IRA Management • 2012: Moved corporate headquarters to Sunnyvale, CA • 2012: Larry Raffone named president • 2013: Launched Edelman Online • 2013: Lowered account minimum from $50,000 to $5,000 • 2013: Ranked #3 largest RIA • 2013: Ric Edelman named the #3 most influential figure in the Registered Investment Advisor industry • 2013: Ric Edelman named one of the fifteen people who has transformed the investment advisory business over the past fifteen years by Investment News • 2013: Inside Personal Finance newsletter received award for excellence from APEX • 2013: Rene Chaze named chief financial officer • 2013: Marvin Davis joined • 2013: Bill Hayes joined • 2014: The Edelman Financial Group changed name to Pinnacle Summer Investments • 2014: Refinanced debt • 2014: Ric Edelman published The Truth About Retirement Plans & IRAs • 2014: Ric Edelman radio show listed in the Heavy Hundred by Talkers Magazine • 2014: Listed in 300 top RIA firms by the Financial Times • 2014: Ranked #9 best workplace amongst medium sized companies in Washington, DC metro area • 2014: Ranked #9 largest RIA firm by Financial Advisor Magazine • 2014: Inside Personal Finance newsletter received award for excellence from APEX • 2015: Pinnacle Summer Investments spun off other wealth managers business • 2015: Rene Chaze named chief operating officer • 2015: Worked with BlackRock to launch exponential technologies ETF • 2015: Hellman & Friedman acquired majority stake • 2015: Issued $230 million of debt • 2015: Ranked #10 largest RIA firm by Financial Advisor Magazine • 2016: Launched broker/dealer EF Legacy Securities • 2016: Ric Edelman published second edition of Rescue Your Money • 2016: Ryan Parker joined • 2016: James Mendelsohn joined • 2016: Marvin Davis resigned • 2016: Lesley Roberts resigned • 2016: Listed on top financial advisory firms list by Barron’s • 2016: Listed in 300 top RIA firms by the Financial Times • 2016: Ranked #6 largest fee-only RIA by Investment News • 2016: Ric Edelman named one of top ten wealth advisors by Forbes • 2016: Rene Chaze named CFO of the Year by the Washington Business Journal • 2016: Rene Chase named CFO of the Year by Virginia Business • 2016: Inside Personal Finance newsletter received Grand Award for overall excellence & award for excellence in financial & investment writing from APEX • 2017: Refinanced debt, increased borrowings, & paid out substantial dvidend • 2017: Ric Edelman published The Truth About Your Future: The Money Guide You Need Now, Later, & Much Later • 2017: Ric Edelman received Loren Dutton Memorial award from International Association of Registered Financial Consultants • 2017: Mike Russell joined • 2017: Aaron Gordon joined • 2017: Jon Isaacon joined • 2017: Rene Chaze refocused on corporate development efforts • 2017: Teri Kozikowski joined • 2017: James Mendelsohn resigned • 2017: Joe Bottazzi resigned • 2018: Ranked #1 financial advisor firm by Barron’s • 2018: Listed in top 300 RIA firms by the Financial Times • 2018: Ric Edelman ranked #16 financial advisor by Forbes • 2018: Financial Engines & Edelman Financial Services merged Source: 9/20/18 Edelman Financial Services Email (Edelman); 9/18/18 Edelman Financial Services Conversation (Parker); 9/18/18 Edelman Financial Services Conversation (Edelman); 9/18 Edelman Financial Services Newsletter; 5/17 Edelman Financial Services Newsletter; 5/17 Financial Planning; 4/27/17 Google News Alerts; 4/26/17 Think Advisor; 4/27/17 Investment News; 4/16/17 New York Times; Tiburon Research & Analysis

  4. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business was Founded by Ric & Jean Edelman in 1987 Brief stint with small broker/dealer in 1986 Comments Two months after the 1987 crash • Founded in 1987 • Founded by Ric & Jean Edelman • Based in Fairfax, VA • CEO: Ric Edelman Originally had partner who left in 1981 (so founded name?) AIG rep Parent Company = The Edelman Financial Center Started as a financial journalist in 1984 Faculty at Georgetown University for nine years Source: 7/27/16 Career Builder Web Site; 7/20/16 Career Builder Web Site;10/15 Edelman Financial Services Presentation (Moore);5/12/14 Think Advisor Web Site; 5/18/11 Answers.Com Web Site; 4/14/11 Edelman Financial Services Presentation (Edelman); 4/4/11 Edelman Financial Services Presentation (Edelman); 8/31/09 RIA Biz; 3/08 Registered Rep; 4/23/07 Barron’s (The Winner’s Circle); 12/04 Research; Tiburon Research & Analysis

  5. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Ric Edelman Launched a Radio Program Called The Ric Edelman Show on WMAL-AM 630 in Washington, DC in 1992 Planning expanded market penetration Comments First guest appearance was in 1990 • -- Source: 5/12/14 Think Advisor Web Site; 4/12 Financial Advisor Magazine; 6/7/13 Investment News; 5/19/11 WMAL Web Site; 5/17/11 Edelman Financial Web Site;4/14/11 Edelman Financial Services Presentation (Edelman); Tiburon Research & Analysis

  6. Edelman Financial Engines’ Financial Engines Business was Founded by Joe Grundfest & Bill Sharpe in 1996 Comments • Founded in 1996 • Founded by Joe Grundfest & Bill Sharpe • Based in Sunnyvale, CA Source: 8/11/14 Business Week Web Site; 12/31/12 Edelman Financial Engines Annual Report;3/22/11 Google News Alerts;3/19/11 Google News Alerts;1/6/11 Google News Alerts;10/7/10 Edelman Financial Engines Presentation (Maggioncalda); 3/16/10 Seek Alpha Web Site; 8/23/10 Edelman Financial Engines Conversation (Maggioncalda); 3/23/10 American Banker; 3/17/10 Wall Street Journal; Tiburon Research & Analysis

  7. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Ric Edelman Has Published Eight Books, Starting with The Truth About Money in 1996 (Page 1) Sold over 1.0 million copies Ric Edelman Books Three book of the year awards Two-time gold medal winner at Axiom Business Book Awards (Jenkins Group) The Truth About Money The New Rules of Money Ordinary People; Extraordinary Wealth What You Need to Know Now • Published first edition in 1996 • Published second edition in 1998 • Published third edition in 2004 • Published fourth edition in 2010 • Published in 1999 • Published by Harper Collins • Published in 2001 • Published by Harper Collins • Published in 2003 Two-time award for Excellence in Financial Education (EIFLE) winner Translated into several languages The Truth About Money: New York Times best seller: award for excellence in financial literacy education (EIFLE); book of the year award from the Institute for Financial Literacy; gold medal winner at Axiom Business Book Awards; Book of the Year b small press magazine; most recently published December 21, 2010 What You Need to Do Now? Ordinary People Extraordinary Wealth: published in 2000? What You Need to Know Now The New Rules of Money: published January 1998; 88 strategies Source: 7/19/16 PR Newswire; 6/20/16 PR Newswire; 10/8/15 LinkedIn Web Site; 5/12/14 Think Advisor Web Site; 7/8/13 Barron’s; 10/12 Edelman Financial Services Presentation (Edelman); 9/6/12 PR Web; 4/12 Financial Advisor Magazine; 4/21/12 Financial Planning; 6/20/11 RIA Biz; 5/17/11 Borders Web Site; 5/17/11 Ric Edelman Web Site; 5/17/11 Edelman Financial Web Site; Tiburon Research & Analysis

  8. Ric Edelman Books (Page 2) Discover the Wealth Within You: published April 2002 Ric Edelman Books The Lies About Money: most recently published in October 2008; Award for Excellence in Financial Literacy Education (EIFLE); gold medal winner at Axiom Business Book Awards; USA Today Best Seller Discover the Wealth Within You The Truth About Retirement Plans & IRAs The Lies About Money Rescue Your Money • Published in 2009 • Published by Simon & Schuster • Published second edition in 2016 • Published in 2003 • Published by Harper Collins • Published in 2007 • Published by Simon & Schuster • Published in 2014 • Published by Simon & Schuster Rescue Your Money: published March 2009; published second edition July 2016; cost $16.00; ISBN: 978-1-5011-5276-4 The Truth About Retirement Plans & IRAs: Paperback; published April 8, 2014; #1 National Best Seller (The Washington Post) Source: 7/2016 Google News Alerts; 7/19/16 PR Newsire; 7/13/16 Edelman Financial Services Email (Edelman); 7/16 Inside Personal Finance; 6/29/16 Edelman Financial Services Email (Ernst); 6/20/16 PR Newswire; 10/8/15 LinkedIn Web Site; 5/12/14 Think Advisor Web Site; 4/6/14 Barron’s; 7/8/13 Barron’s; 3/13/13 RIA Biz; 4/12 Financial Advisor Magazine; 6/20/11 RIA Biz; 5/17/11 Borders Web Site; Tiburon Research & Analysis

  9. Ric Edelman Books (Page 3) The Truth About Your Future: Discusses impact of exponential technologies on personal finances Ric Edelman Books The Truth About Your Future: The Money Guide You Need Now, Later, & Much Later -- -- -- • -- • Published in 2017 • Published by Simon & Schuster • -- • -- Source: 4/21/17 New York Times; 4/5/17 New York Times; 4/5/17 USA Today; 3/23/17 Edelman Financial Services Email (Edelman); 3/22/17 Edelman Financial Services Email (Edelman); Tiburon Research & Analysis

  10. Edelman Financial Engines’ Predecessor The Mutual Fund Store was Founded by Adam Bold in 1996 Comments • Founded in 1996 • Founded by Adam Bold • Based in Overland Park, KS • CEO: Adam Bold Source: 8/29/11 Ask.Com Web Site; 6/25/11 The Mutual Fund Store Web Site; 5/31/11 The Mutual Fund Store Web Site; 5/30/11 Investment News; Tiburon Research & Analysis

  11. Edelman Financial Engines’ Financial Engines Business Has Raised Several Rounds of Venture Capital, Including its Second Round in 1998 FTV Capital? 1998? Financial Engines Venture Capital Raises Other investors include Oak Hill Capital Partners (came in round three or four?) Round 2 -- -- Round 1 Edelman Financial Engines raised $120 million from strategic alliances with Goldman Sachs Group, Merrill Lynch, Intel, & JP Morgan Chase & Company • Raised in 1998 • Raised $9.0 million • Investors • Thomson Reuters (TTC Ventures) • Charter Ventures • Foundation Capital • New Enterprise Associates • Raised in XXXX • Investors • Charter Ventures • Foundation Capital • New Enterprise Associates • -- • -- Source: 3/17/10 Wall Street Journal; 6/2/08 FT Ventures Web Site; 4/29/03 Integrated Decision Systems Press Release; 11/02 Bloomberg Wealth Manager; 8/14/00 Investment News; 7/28/00 HD Vest Meeting (Vest); 4/10/00 Edelman Financial Engines Web Site; 4/10/00 Forbes Web Site; 3/1/00 CBS Market Watch Web Site; 3/3/00 CNET News Web Site; 9/30/98 Edelman Financial Engines Press Release; Tiburon Research & Analysis

  12. Financial Engines Venture Capital Raises (Page 2) Edelman Financial Engines Venture Capital Raises -- -- -- -- • -- • -- • -- • -- Source: Tiburon Research & Analysis

  13. Edelman Financial Engines’ Financial Engines Business Launched its Online Advice Business in 1998 Shifted from education to advice Comments • -- Source: 12/31/12 Edelman Financial Engines Annual Report; 10/7/10 Edelman Financial Engines Presentation (Maggioncalda); 8/23/10 Edelman Financial Engines Conversation (Maggioncalda); 7/19/10 Business Week; 2/26/10 San Francisco Business Times; 11/4/08 Edelman Financial Engines Web Site; 6/2/08 FT Ventures Web Site; 11/4/99 Edelman Financial Engines Press Release; Tiburon Research & Analysis

  14. Edelman Financial Engines’ Predecessor The Mutual Fund Store’s Adam Bold Began His Radio Program Called The Mutual Fund Show in Kansas City, MO in 1998 Comments • -- Source: 5/31/11 The Mutual Fund Store Web Site; 5/30/11 Kansas City Star; Tiburon Research & Analysis

  15. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Ric Edelman Has Won Many Awards, Including Being Given an Honorary Doctorate by Rowan University in 1999 (Page 1) Edelman Financial Services & Ric Edelman has received more than 100 business, advisory, communication, & community service awards Ric Edelman Awards & Recognitions Ernest & Young Barron's Rowan University Research Magazine • 2001: Named entrepreneur of the year (Washington, DC region) • 1999: Received honorary doctorate • 2004-2012: Listed on Barron's Top 100 list of financial advisors • Named the number one independent financial advisor in 2009, 2010, & 2012 • 2004: Inducted into financial advisor hall of fame Barron’s: Number one ratings published August 31, 2009; August 28, 2010; & August 27, 2012 Research Magazine: December 2004 Source: 5/17 Edelman Financial Services Newsletter; 3/23/17 Edelman Financial Services Web Site; 7/19/16 PR Newswire; 7/5/16 Edelman Financial Services Press Release; 6/20/16 PR Newswire; 10/8/15 LInkedIn Web Site; 5/15 Edelman Financial Services Brochure; 5/12/14 Think Advisor Web Site; 8/1/13 Edelman Financial Services Email (Edelman); 7/8/13 Barron’s; 6/24/13 Edelman Financial Services Email (Edelman); Tiburon Research & Analysis

  16. Ric Edelman Awards & Recognitions (Page 2) Ric Edelman Awards & Recognitions Registered Rep The Winner’s Circle RIA Biz Talkers Magazine • 2004: Listed on America's Top 50 Brokers list • 2012: Ranked as the #1 most influential financial advisor in America • 2013: Ranked as the #3 most influential figure in the Registered Investments Advisor industry • 2006 & 2007: Named among The Winner’s Circle’s top 100 financial advisors • 2012: Ranked radio show as #2 most important weekend only talk radio show • 2014: Ranked in the Heavy Hundred Source: 5/17 Edelman Financial Services Newsletter;10/8/15 Investment News Web Site; 6/7/13 Investment News Web Site; 3/13/13 RIA Biz; 10/12 Edelman Financial Services Presentation (Edelman); 9/6/12 PR Web; 5/2/12 The Edelman Financial Group Press Release; 5/2/12 PR Web; 4/14/11 Edelman Financial Services Presentation (Edelman); Tiburon Research & Analysis

  17. Ric Edelman Awards & Recognitions (Page 3) Ric Edelman Awards & Recognitions International Association of Registered Financial Consultants Financial Planning Forbes Investment News • 2012: Named one of nine advisors with vast Twitter followings • 2016: Named one of top ten wealth advisors • 2018: Ranked #16 financial advisor • 2013: Named one of the fifteen people who have transformed the investment advisory business over the past fifteen years • 2017: Received Loren Dunton Memorial Award Source: 9/20/18 Edelman Financial Services Email (Edelman); 5/17 Edelman Financial Services Newsletter;3/23/17 Edelman Financial Services Web Site;10/8/15 LInkedIn Web Site; 10/8/15 Investment News Web Site; 10/12 Edelman Financial Services Presentation (Edelman); 9/6/12 PR Web; 5/2/12 The Edelman Financial Group Press Release; 5/2/12 PR Web; 4/14/11 Edelman Financial Services Presentation (Edelman); Tiburon Research & Analysis

  18. Ric Edelman Awards & Recognitions (Page 4) Ric Edelman Awards & Recognitions -- -- -- -- • -- • -- • -- • -- Source: Tiburon Research & Analysis

  19. Edelman Financial Engines’ Predecessor The Mutual Fund Store Opened its Second Office in Saint Louis, MO in 2000 Business model born Comments • -- Source: 5/31/11 The Mutual Fund Store Web Site; 5/30/11 Kansas City Star; Tiburon Research & Analysis

  20. Edelman Financial Engines’ Financial Engines Business Shifted to a Business to an Enterprise Model in 2001 Began selling to retirement plans? Comments • -- Source: 10/7/10 Edelman Financial Engines Presentation (Maggioncalda); 8/23/10 Edelman Financial Engines Conversation (Maggioncalda); 7/19/10 Business Week; 2/26/10 San Francisco Business Times; 11/4/08 Edelman Financial Engines Web Site; 6/2/08 FT Ventures Web Site; 11/4/99 Edelman Financial Engines Press Release; 9/30/98 Edelman Financial Engines Press Release; Tiburon Research & Analysis

  21. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Has Won Many Awards, Including Being Listed as One of the Great Places to Work by Washington Magazine in 2003, 2005, & 2007 (Page 1) Financial Times: Been on list all five years done (so also 2015 & 2017?) Edelman Financial Services Awards & Recognition APEX Washington Magazine Wealth Management Financial Times • 2003, 2005, & 2007: Listed in great places to work • 2012-2014: Received Award for Excellence • 2016: Received Grand Award for Overall Excellence & Award for Excellence in Financial & Investment Writing • 2017: Received Grand Award • 2018: Received award for excellence for investment writing and design layout • 2014: Listed as one of 300 top RIAs • 2016: Listed as one of top 300 RIAs • 2018: Listed as one of 300 RIAs • 2015: Ranked #3 Largest RIA Source: 8/16 Edelman Financial Services Newsletter; 7/27/16 Career Builder Web Site; 7/19/16 PR Newswire; 7/13/16 PR Newsire; 7/5/16 Edelman Financial Services Press Release; 7/16 Financial Advisor Magazine;6/21/16 LinkedIn Email (Doe);6/20/16 Google News Alerts;6/20/16 PR Newswire; 10/8/15 LInkedIn Web Site; 10/6/15 Washington Post Web Site;5/15 Edelman Financial Services Brochure; Tiburon Research & Analysis

  22. Edelman’s Edelman Financial Services Awards & Recognition (Page 2) Edelman Financial Services Awards & Recognition Financial Advisor Magazine Investment News Barron’s Washington Post • 2016: Ranked as #6 largest fee-only RIA • 2016: Listed on top financial advisory firms list • 2018: Ranked #1 financial advisor firm • 2014: Ranked #14 best workplace amongst medium size companies in the Washington, DC metro region • 2014: Ranked #9 largest RIA • 2015: Ranked #10 largest RIA • 2015: Ranked #10 largest RIA firm Source: 9/20/18 Edelman Financial Services Email (Edelman); 7/13/16 Google News Alerts; 7/13/16 LinkedIn Web Site; 1/1/15 Wealth Management; Tiburon Research & Analysis

  23. Edelman’s Edelman Financial Services Awards & Recognition (Page 3) Edelman Financial Services Awards & Recognition -- -- -- -- • -- • -- • -- • -- Source: Tiburon Research & Analysis

  24. Edelman Financial Engines’ Financial Engines Business Revised its Strategy with the Help of FTV Capital from 2003-to-2004 Comments • -- Source: 6/2/08 FT Ventures Web Site; Tiburon Research & Analysis

  25. Edelman Financial Engines’ Financial Engines Business Launched its Professional Management Business in 2004 Shifted from advice to management Comments • -- Source: 5/9/13 San Francisco Chronicle;12/31/12 Edelman Financial Engines Annual Report; Tiburon Research & Analysis

  26. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business was Acquired by Sanders Morris Harris Group in 2005 Comments • Founded in 1987 • Founded by Ric Edelman • Based in Fairfax, VA • CEO: Ric Edelman • Sanders Morris Harris Group acquired 51% stake in 2005 • Paid $100 million (largest transaction to date) • Objective was to help Edelman Financial Services grow nationally • Raised stake to 76% in 2008 Source: 5/12/14 Think Advisor Web Site; 4/12 Financial Advisor Magazine; 6/20/11 RIA Biz; 5/18/11 Funding Universe Web Site; 5/17/11 Reuters; 5/17/11 Sanders Morris Harris Web Site; 5/13/11 Cummer Moyers Web Site; 5/13/11 Kissinger Web Site; 4/14/11 Edelman Financial Services Presentation (Edelman); 12/9/10 RIA Biz; 11/29/10 On Wall Street; 11/29/10 Sanders Morris Harris Group Press Release; Tiburon Research & Analysis

  27. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Converted its Business to Fee-Only in 2005 Comments • -- Source: 4/12 Financial Advisor Magazine; Tiburon Research & Analysis

  28. Edelman Financial Engines’ Financial Engines Business was Boosted by the Passing of the Pension Protection Act of 2006 Also subsequent Department of Labor regulations Comments Further supported the existing foundation for professional investment management in 401K accounts • -- Reduced plan sponsors’ reluctancy to make investment advice available for employees due to fear of increased fiduciary or legal risk Adherence to new guidelines provides specific safeguards to plan sponsors Also though promoted target date mutual funds as another advice option Number of plan sponsors offering investment advisory solutions increased Source: 5/9/13 San Francisco Chronicle;12/31/12 Edelman Financial Engines Annual Report; Tiburon Research & Analysis

  29. Edelman Financial Engines’ Predecessor The Mutual Fund Store Raised Venture Capital from Summit Partners in 2006 Summit Partners: Invested via Summit Accelerator Fund The Mutual Fund Store Venture Capital Raises Series A -- -- -- • Raised in 2006 • Summit Partners • -- • -- • -- Source: 5/30/11 Kansas City Star; 2/11/18 TMFS Holdings Reg D Filings; Tiburon Research & Analysis

  30. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Shifted its Custody from Royal Alliance to TD Ameritrade in 2007 Comments • -- Source: 6/20/11 RIA Biz; Tiburon Research & Analysis

  31. Edelman Financial Engines’ Predecessor The Mutual Fund Store Has Won Many Awards, Including Being Named to Inc. Magazine’s 5,000 List of the Fastest Growing Private Companies in 2007-2010 (Page 1) The Mutual Fund Store Awards & Recognition Inc. Wealth Manager Investment News -- • 2007-2010: Named to 5,000 list of fastest growing private companies • 2007: #1,386 • 2008-2010: Listed as #1 in client relationships among financial advisors not registered as broker/dealers, banks, or trust companies • 2010: Also listed as #3 in assets under management • 2011: Listed as #3 in discretionary client assets under management among fee-only registered investment advisors not doing business as a broker/dealer and not charging commissions • -- Source: 8/29/11 Ask.Com Web Site; Tiburon Research & Analysis

  32. The Mutual Fund Store Awards & Recognition (Page 2) The Mutual Fund Store Awards & Recognition -- -- -- -- • -- • -- • -- • -- Source: 8/29/11 Ask.Com Web Site; Tiburon Research & Analysis

  33. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Began a National Expansion Plan into Major Markets in 2009 Began by opening six offices in the New York, NY metropolitan area Comments Branding is strong in Chicago, IL; Detroit, MI; San Francisco, CA; & Miami, FL • -- Source: 5/12/14 Think Advisor Web Site;10/21/09 RIA Biz; 8/31/09 RIA Biz; Tiburon Research & Analysis

  34. Edelman Financial Engines’ Financial Engines Business was Reincorporated in Delaware in 2010 Comments • -- Source: 12/31/12 Edelman Financial Engines Annual Report; Tiburon Research & Analysis

  35. Edelman Financial Engines’ Financial Engines Business went Public in 2010 March 16, 2010 Comments FNGN • Went public in 2010 • Sold 7.5 million shares at $12.00 (above expected $9.00 to $11.00 range) (investors sold 3.1 million additional shares) • Raised $90 million (before $10.5 million of underwriters’ discounts & offering costs) (established a market capitalization of $435 million) • Stock closed at $17.25 on offering day • Resulted in 41.1 million shares outstanding • Goldman Sachs Group & UBS were underwriters (Cowan & Piper Jaffray were co-managers) Considered home run IPO Source: 5/9/13 San Francisco Chronicle;12/31/12 Edelman Financial Engines Annual Report; 10/7/10 Edelman Financial Engines Presentation (Maggioncalda); 8/23/10 Edelman Financial Engines Conversation (Maggioncalda); 7/19/10 Business Week; 4/10 Institutional Investor; 3/23/10 American Banker; 3/22/10 Money Management Executive; 3/17/10 Wall Street Journal; 3/16/10 Seeking Alpha Web Site; 2/26/10 San Francisco Business Times; Tiburon Research & Analysis

  36. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Ric Edelman Launched a PBS Television Show Called the Truth About Money with Ric Edelman in 2011 26 episodes Comments $12 million production cost • -- Reaches 20 million viewers (70% of US television households) Planning expanded market penetration Source: 5/12/14 Think Advisor Web Site; 6/20/11 RIA Biz; 5/10/11 Sanders Morris Harris Group Press Release; 4/14/11 Edelman Financial Services Presentation (Edelman); 4/11/11 RIA Biz; 3/25/11 RIA Biz; Tiburon Research & Analysis

  37. Edelman Financial Engines’ Financial Engines Business Introduced Income + in 2011 January 2011 Comments Retirement income solution for 401K plan participants • -- Feature of Portfolio Management business Calculates & facilities steady monthly payments Discretionary Suggest annuity purchases later in retirement Reduced fiduciary risk for sponsors by eliminating the need for an irrevocable selection of a guarantee or annuity provider No additional cost Source: 12/31/12 Edelman Financial Engines Annual Report;Tiburon Research & Analysis

  38. Edelman Financial Engines’ Predecessor The Mutual Fund Store Celebrated its Fifteenth Anniversary in 2011 Comments • -- Source: 5/30/11 Kansas City Star; Tiburon Research & Analysis

  39. Edelman Financial Engines’ Predecessor The Mutual Fund Store Raised Private Equity From Warburg Pincus in 2011 The Mutual Fund Store Private Equity Raises Series A -- -- -- • Raised in 2011 • Warburg Pincus • -- • -- • -- Source: Tiburon Research & Analysis

  40. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Predecessor Sanders Morris Harris (then Renamed The Edelman Financial Group) went Private by Selling a Stake to Lee Equity Partners in 2012 Agreed 4/16/12 Comments Closed 9/20/12 • Founded in 1987 • Founded by Ric Edelman • Based in Fairfax, VA • CEO: Ric Edelman • Sanders Morris Harris Group acquired 51% stake in 2005 • Paid $100 million (largest transaction to date) • Objective was to help Edelman Financial Services grow nationally • Raised stake to 76% in 2008 • Acquired majority stake in 2012 Paid $258-$267 million ($8.85 per share) Paid 43% premium to prior $194 million valuation (private equity firms willing to pay well for large financial advisory firms) Held go shop period Other investors included Ric Edelman, executive team members, & minority investors sourced by Lee Equity Partners 95% approval vote (74% excluding management & Lee Equity Partners) Summer Holdings II (Delaware corporation) (and Summer Merger Sub (Texas corporation)) Mark Gormley & Ben Hochberg Source: 5/12/14 Think Advisor Web Site; 7/11/13 Google Web Site; 7/8/13 Barron’s; 6/18/13 Lee Equity Partners Email (Gormley); 3/13/13 RIA Biz; 9/14/12 Houston Business Journal; 9/13/12 Sacramento Bee; 9/13/12 Street Insider.Com Web Site; 9/13/12 The Edelman Financial Group Press Release; 7/17/12 The Edelman Financial Group Form 8K; Tiburon Research & Analysis

  41. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Moved its Corporate Headquarters from Houston, TX to Fairfax, VA in 2012 No expected job losses in Houston, TX Comments Tax & other issues needed to be studied • -- Source: Tiburon Research & Analysis

  42. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Ric Edelman Celebrated Twenty Years on the Radio in 2012 Close to 1,000 shows Comments • -- Source: 5/2/12 The Edelman Financial Group Press Release; 5/2/12 PR Web; Tiburon Research & Analysis

  43. Edelman Financial Engines’ Financial Engines Business Introduced Total Retirement Advice in 2012 June 2012 Comments Provides help on tax deferred accounts outside of served 401K plans (e.g., IRAs & other 401K accounts) • -- Part of Professional Management business Non-discretionary advice No additional cost Source: 12/31/12 Edelman Financial Engines Annual Report;Tiburon Research & Analysis

  44. Edelman Financial Engines’ Financial Engines Business Introduced Individual Retirement Account (IRA) Management in 2012 Manage additional accounts for existing customers Comments Retain clients as they retire • -- Manages accounts rolled to TD Ameritrade or The Charles Schwab Corporation (planning to add more options) Charges 50-75 basis points Source: 5/9/13 San Francisco Chronicle;12/31/12 Edelman Financial Engines Annual Report;Tiburon Research & Analysis

  45. Edelman Financial Engines’ Financial Engines Business Moved its Corporate Headquarters to Sunnyvale, CA in 2012 Comments • -- Source: 12/31/12 Edelman Financial Engines Annual Report;Tiburon Research & Analysis

  46. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Launched Edelman Online In 2013 January 8, 2013 Comments • -- Source: 6/7/13 Investment News 3/13/13 RIA Biz;Tiburon Research & Analysis

  47. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Lowered its Account Minimum From $50,000 to $5,000 in 2013 Comments • -- Source: 8/16 Edelman Financial Services Newsletter; 6/7/13 Investment News Tiburon Research & Analysis

  48. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Parent Company The Edelman Financial Group Changed its Name to Pinnacle Summer Investments in 2014 Comments • -- Source: Tiburon Research & Analysis

  49. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business Refinanced its Debt in 2014 July 1, 2014 Fortress Credit Co LLC Comments Term loans & revolving lines of credit • -- Paid off aries Took ~$60 million dividend Source: Tiburon Research & Analysis

  50. Edelman Financial Engines’ Retail Business' Edelman Financial Services Business’ Parent Company Pinnacle Summer Investments Spun Off its Other Wealth Managers Business in 2015 September 2015 Nine non-core businesses Comments $59 million (value or revenues?) • -- Plan to treat as discontinued operations Spun out Summer Wealth Management as Affiliated Wealth Partners (formed 4/1/15) To include all OWM businesses; additional ownership stakes in GFS, Leonetti & Rikoon; Wunderlich earn-out; PTC ownership stake; Concept Capital note; current & pending OWMs litigation Distribution to be recorded at carrying value after reduction for impairment of value; OWM shares to go only to A unit holders, hence this alters A versus B unit holders relative risks Removes OWMs ability to cause reputation risks for Edelman Financial Services; should allow Edelman Financial Services to be valued at higher pure play growth multiple; allows OWMs to have aligned incentives Source: 7/30/16 Virginia Business Magazine; 7/20/16 Washington Business Journal Web Site; Tiburon Research & Analysis

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