After a week of speculation, Goldman Sachs Group Inc. said Monday morning it was selling its registered investment advisor business, Personal Financial Management, to Creative Planning, a leading RIA with $245 billion in client assets.
Terms of the transaction were not released on Monday. The transaction is expected to close in the fourth quarter and result in a gain, according to a statement by Goldman Sachs.
The bank had said last Monday that it was considering selling the registered investment advisor unit formerly known as United Capital Financial Partners, in a bid to shift its focus back to the ultra-rich.
Goldman acquired United Capital for $750 million in 2019 and then renamed it Personal Financial Management. The RIA unit targets high-net-worth clients, but not the ultra-wealthy, who have accounts with $20 million to $50 million and are the typical target client for the giant investment bank.
Goldman's RIA unit has about $29 billion in client assets. Goldman CEO David Solomon has recently spearheaded a comprehensive reorganization, dividing the institution into three distinct units, while simultaneously scaling down the bank’s objectives for its consumer-oriented operations.
Creative Planning said this summer it would use Goldman Sachs Advisor Solutions, marking perhaps the largest victory yet for the investment bank’s growing custody business.
“Building on our existing custody relationship with Goldman Sachs Advisor Solutions, an expanded partnership with Goldman Sachs is a natural, strategic fit,” Peter Mallouk, CEO of Creative Planning, said in a statement. “We welcome the talented advisors from PFM as we remain committed to being the leading advisor in the independent space."
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
