Goldman Sachs Strikes Deal to Sell RIA

It bought the RIA, United Capital Financial Partners, in 2019 but is now revamping its wealth management strategy.

|

Goldman Sachs said it has struck a deal to sell part of its wealth business to an independent wealth manager, part of a strategy refresh that is seeing the bank exit some businesses and focus its wealth offering on targeting the super rich.

The Wall Street bank, which did not disclose the sale price, said on August 28 that the sale to Creative Planning LLC is expected to close in the fourth quarter and result in a gain.

The latest sale is part of a shift in strategy after CEO David Solomon reorganized the firm into three units last year and scaled back ambitions for its consumer business, which lost $3 billion in the last three years.

Goldman bought the registered investment adviser (RIA), formerly known as United Capital Financial Partners, for $750 million in 2019 when it managed about $25 billion in funds.

Creative Planning has more than 2,100 employees across its affiliates and $245 billion in combined assets under management and advisory.

The RIA business was relatively small in size compared with Goldman’s core business, which focuses on the super rich.

Goldman’s private wealth arm oversees $1 trillion in assets for ultra-high-net-worth clients, who have $60 million or more in investable assets.

High-net-worth individuals — who would fall within the business Goldman is considering selling — typically have about $1 million to $10 million to invest.

Marc Nachmann, Goldman Sachs global head of Asset & Wealth Management, told Reuters the current strategy is to invest more on its core businesses such as ultra-high net worth and workplace growth strategy including the proceeds from the sale.

“We think there’s a lot of space for us to grow. So we feel really good about it,” Nachmann said, adding these plans are without a potential acquisition.

The bank can serve high-net-worth investors through RIA and other wealth management clients, such as Creative Planning, Goldman said.

Earlier in July, Creative Planning announced it had entered into a strategic custody relationship with Goldman’s advisor solutions platform, which serves independent advisors.

Shares of Goldman Sachs were up 1.8% in afternoon trade.

“This transaction is consistent with Goldman’s ongoing efforts to streamline core segments and de-emphasize legacy consumer-centric businesses,” said Daniel Fannon, banking analyst at Jefferies, in note.

“Within wealth, GS can now focus exclusively on growth of the workplace and premier UHNW advice channels, while also supporting private banking and lending revenues.”

Goldman Sachs & Co LLC is serving as financial advisor and Weil, Gotshal & Manages LLP is serving as legal counsel to Goldman Sachs.

Goldman is also pushing ahead with a sale of its fintech business, GreenSky, and has also offloaded the bulk of its unsecured consumer loans after it halted this kind of lending last year.

This article was provided by Reuters.

Latest News

See all >>

One Big Beautiful Bill’s $10K Auto Loan Tax Break is Illusory for Most

Only 3% of vehicle buyers will qualify, and most for a far smaller deduction, Caribou reports.

Finalists Named for Awards Honoring Advisors Who Make a Difference

Invest in Others will present awards and donations to advisors' designated charities — ranging from $2,000 to $60,000 — at its upcoming gala.

CFP Board Names Kansas State U. Researcher as 2026 Chair-Elect

Martin Seay’s studies include how consumers seek and use financial advice.

Many Retirees Consider ‘Unretiring,’ New Survey Reveals

Economic volatility is fueling increasing anxiety about retirement readiness among Americans 50 and older.

As Texas Targets Flood Scammers, SEC Offers Tips to Avoid Being Duped

Scammers seek to fleece disaster victims and those who want to help, officials warn.

Retirement Dreams Delayed, Altered or Canceled for 40% of Pre-Retirees

Many no longer have faith in traditional rules of thumb of retirement planning, a Nationwide survey reveals.