Moody’s applies B1 to Edelman Financial, loans

Moody's Investors Service said it assigned a B1 corporate family rating to Edelman Financial Center, LLC (OpCo) following the announcement of the leveraged buyout of Edelman Financial, LP (EFS) by private equity firm Hellman & Friedman.

The agency also assigned B1 ratings to a $30 million revolving credit facility and a $230 million senior secured term loan, the proceeds of which will be used to fund the transaction.

The buyout of Edelman Financial, LP will also be funded with equity supplied by Hellman & Friedman, Lee Equity Partners and EFS senior management, including founder and CEO Ric Edelman.

The outlook is stable.

Moody’s said the B1 corporate family rating reflects the strength of Edelman's wealth management platform and the rapid and consistent growth of its assets under management (AUM), which were $15.3 billion as of Oct. 31.

The rating incorporates positive trends in the company's credit profile, largely driven by its increasing, albeit small, scale, strong asset retention and its successful focus on the mass affluent segment in the highly fragmented Registered Investment Advisor (RIA) universe.

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