• Sector: Financial Services
  • Geography: Americas
  • Stage: Growth
  • Investment Year: 2011
  • Exit Year: 2017
  • Website Link

The Mutual Fund Store / Financial Engines

In 2011, Warburg Pincus acquired a majority ownership position in The Mutual Fund Store (TMFS). TMFS, was a nationally-branded, registered investment advisor (RIA) that provided mutual fund investment advisory services for mass affluent clients throughout the United States. Warburg Pincus’ investment thesis was predicated on supporting the growth of a unique and highly scalable investment advisory platform that had great success operating in the widely underpenetrated mass affluent market. The company’s market leading position, existing radio relationships, proven franchise model, and brand favorably positioned it for considerable growth. Over the course of its investment, Warburg Pincus supported TMFS in key growth initiatives, including expanding lead-generation capabilities and diversifying away from the historically radio-focused model. In 2016, TMFS was acquired by Financial Engines (NASDAQ:FNGN), a publicly traded leading provider of independent, technology-enabled portfolio management services, investment advice, and retired income services to participants in employer-sponsored defined contribution plans. Warburg Pincus fully exited its position in 2017.

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