Ric Edelman Signs New Multi-Year Contract to Remain Head of Edelman Financial Services LLC
For Immediate Release
January 29, 2009
Edelman also becomes President of Sanders Morris Harris Group, firm that acquired EFS in 2005
Media Contact:
Duke Fanelli of Edelman Financial
703-227-0548
dfanelli@ricedelman.com
FAIRFAX, VA -- Edelman Financial Services LLC today announced that Ric Edelman will remain its chairman and CEO, assuring the continuity and growth of the firm he founded more than 20 years ago.
Edelman has agreed to stay at the helm of EFS at least through May 2013, retaining full executive control of the firm in a deal signed with Sanders Morris Harris Group, the firm that acquired EFS in 2005. As part of that deal, Edelman is also being named President of SMHG.
His appointments, effective immediately, are part of a broad restructuring of the partnership between him, his firm and SMHG. Rather than purchase the remaining 24% of EFS in May 2009, SMHG will instead acquire 66% of Edelman Financial Advisors LLC, the firm Edelman established in 2007 to deliver financial planning and investment management services nationwide. The terms were not disclosed. EFS primarily serves the Washington, D.C., market. As a result of the restructuring, SMHG will own 76% of EFS and EFA, while Edelman will own 24% of both entities.
Edelman's appointment and the realigned ownership structure are designed to support the growth of the Edelman Managed Asset Program®, his investment management program that has attracted more than $3 billion in consumer assets since its launch in 2005.
"I am excited at the opportunity to continue serving our clients and my colleagues and I are as committed as ever to helping them achieve their financial goals, just as we've done for more than 20 years," said Edelman. "Now, we'll be able to combine the talents and assets of SMHG, so that many more people can enjoy the benefits of our services."
"We've always been excited about our partnership with Edelman Financial Services," said SMHG Chairman George Ball. "Now, with Ric as president, we'll focus on the growth of our asset management businesses, including helping Ric extend the reach of Edelman Financial."
National expansion is driven by Edelman's high media and public profile. An award-winning financial advisor, he hosts The Ric Edelman Show, heard on radio stations nationwide every weekend, has written several award-winning bestsellers on personal finance and hosts popular television specials for PBS television.
About EMAP
The Edelman Managed Asset Program®, based on Modern Portfolio Theory, enables individual investors to invest in asset allocation models that feature as many as 19 separate asset classes and market sectors. This extensive diversification is obtained through institutional funds and exchange-traded funds that feature low fees, offering individuals access to investments previously available only to multi-million dollar institutional investors, pension funds, and endowments.
About Ric Edelman
Long recognized as one of the country's leading financial industry executives, Ric Edelman was inducted into Research magazine's Financial Advisor Hall of Fame in 2004. He has been included on Barron's annual rankings of the nation's top financial advisors for five consecutive years (2004-2008). Edelman was a member of the faculty at Georgetown University for nine years. He is a national trustee of the Boys and Girls Clubs of America, and is a past chairman of the board of the United Way of the National Capital Area.
About Edelman Financial
Edelman Financial Services LLC and Edelman Financial Advisors LLC employ more than 160 people combined at the firms' headquarters offices in Fairfax, Va., and locations in Virginia and Maryland. More information about the firm is available at www.RicEdelman.com.
About Sanders Morris Harris Group
Sanders Morris Harris Group is a wealth/asset management company that manages approximately $8.6 billion in client assets. Assets under management in this context include the gross value of assets managed directly or via outside managers under a limited power of attorney, assets under advisement, and assets held in custody for clients by outside clearance firms. Its corporate philosophy of investment in common aligns its interests with those of its clients. SMHG has over 600 employees in 21 states. Additional information is available at www.smhgroup.com.
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Ric Edelman is an Investment Advisor Representative and offers advisory services through Edelman Financial Advisors LLC and Edelman Financial Services LLC, SEC registered investment advisers. Ric is also a Registered Representative of and offers securities for Edelman Financial Services LLC through SMH Capital Inc., an independent broker/dealer, member FINRA/SIPC.
Barron's rankings "Top 100 Financial Advisers" (2004-2008), and "Top 100 Independent Financial Advisers" (2007-2008), compiled by independent financial industry researcher R.J. Shook, based on assets under management, advisor's contributions to the firm's revenues and profits, quality of service, and client satisfaction.
In addition to the historical information, this press release contains certain forward-looking statements under federal securities laws, including statements regarding Sanders Morris Harris Group’s expected future business prospects, revenue and income. These forward-looking statements are based upon current expectations and involve certain risks and uncertainties that could cause actual results to differ materially from any such statement. These risks and uncertainties, many of which are beyond the Company's control, include, but are not limited to (1) trading volume in the securities markets; (2) volatility of the securities markets and interest rates; (3) changes in regulatory requirements that could affect the demand for the Company's services or the cost of doing business; (4) general economic conditions, both domestic and foreign, especially in the regions where the Company does business; (5) changes in the rate of inflation and related impact on securities markets; (6) competition from existing financial institutions and other new participants in the securities markets; (7) legal developments affecting the litigation experience of the securities industry; (8) successful implementation of technology solutions; (9) changes in valuations of the Company’s trading and warrant portfolios resulting from mark-to-market adjustments; (10) dependence on key personnel; (11) demand for the Company's services; and (12) litigation and securities law liabilities. The Company does not undertake any obligation to publicly update or revise any forward-looking statements.
Rescue Your Money, written by award-winning financial advisor Ric Edelman, is your personal investment recovery plan.
