The Goldman Sachs Group Inc. is close to buying United Capital Financial Partners Inc., a leading roll up and aggregator of registered investment advisers, according to a report in the Wall Street Journal on Friday and InvestmentNews sources.
According to one industry source who asked not to be named, Goldman will pay $750 million for United Capital, a private company which is the brainchild of Joe Duran.
United Capital Financial Partners is the parent company of United Capital Financial Advisers, an RIA with $23.4 billion in assets under management and 95 offices nationally.
The move is significant for both firms. It gives Goldman a better foothold in the broader wealth management space, an industry into which the giant investment bank has said it wants to expand. In 2003, Goldman bought Ayco, which works with companies to offer financial planning to executives.
For United Capital, the sale gives Mr. Duran and his investors a significant payout after years of building the network. The deal is also a mark of validation for the independent RIA industry.
A United Capital spokesman was not immediately available to comment. A Goldman Sachs spokeswoman declined to comment.
Financial Planning magazine reported last month that United Capital had hired a banker this year to explore a sale.