Goldman Sachs to Sell Personal Financial Management Unit to Creative Planning

One sentence summary – Goldman Sachs plans to sell its personal financial management unit to Creative Planning in a move to consolidate and strengthen its position in the wealth management sector, while continuing to support its high-net-worth clients through a strategic partnership.

At a glance

  • Goldman Sachs plans to sell its personal financial management (PFM) unit to Creative Planning.
  • The transaction is expected to be finalized in the fourth quarter of this year.
  • The sale price for Goldman’s PFM business has not been disclosed.
  • Goldman Sachs acquired a team of approximately 220 financial advisors managing $25 billion in assets through the purchase of United Capital Financial Partners in May 2019.
  • The decision to sell the PFM unit is seen as a step towards achieving Goldman’s goals and targets outlined at its investor day earlier this year.

The details

Goldman Sachs, a leading investment bank, has announced plans to sell its personal financial management (PFM) unit to Creative Planning.

The transaction is expected to be finalized in the fourth quarter of this year.

The sale price for Goldman’s PFM business has not been disclosed.

This decision follows Goldman Sachs’ acquisition of a team of approximately 220 financial advisors managing $25 billion in assets.

This acquisition was made through the purchase of United Capital Financial Partners in May 2019.

At the time, CEO David Solomon saw this acquisition as an opportunity to expand Goldman’s client base.

The aim was to reach beyond ultra-rich individuals to those who possess a few million dollars to invest.

However, Goldman Sachs recognized that its PFM business was relatively small.

This was in comparison to its broader ambitions in wealth and asset management.

In February, the bank revealed that it only held around 1% of the high-net-worth market.

Therefore, the decision to sell the PFM unit is seen as a step towards achieving the goals and targets outlined by Goldman at its investor day earlier this year.

By divesting this unit, Goldman Sachs will be able to concentrate its efforts on its core ultra-high net worth wealth management and workplace growth strategy.

Despite the sale, the bank will continue to support its high-net-worth clients.

This support will be provided through a strategic partnership with Creative Planning.

Creative Planning is a Kansas-based registered investment advisor.

It boasts a workforce of over 2,100 employees.

Creative Planning manages and advises assets worth a substantial $245 billion.

This partnership will enable Goldman Sachs to ensure its clients receive ongoing support.

At the same time, it will allow the bank to focus on its primary wealth management objectives.

Goldman Sachs’ decision to sell its PFM unit to Creative Planning signifies a strategic move.

This move is aimed at consolidating and strengthening its position in the wealth management sector.

The transaction aligns with the bank’s aspirations and goals.

It also allows the bank to provide continued support to its high-net-worth clients through a strategic partnership.

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A handshake between two pixelated figures, one representing Goldman Sachs and the other representing Creative Planning, symbolizing the sale of the Personal Financial Management Unit.

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– Goldman Sachs has agreed to sell its personal financial management unit to Creative Planning.
The transaction is expected to close in the fourth quarter of this year.
The sale price for Goldman’s PFM business has not been disclosed.
In May 2019, Goldman acquired a team of about 220 financial advisors managing $25 billion in assets through the acquisition of United Capital Financial Partners.
– CEO David Solomon saw the acquisition as a way to expand Goldman’s reach beyond ultra-rich clients to those who are wealthy with a few million dollars to invest.
– However, the PFM business was considered too small in the context of Goldman’s larger aspirations in wealth and asset management.
– Goldman stated in February that it only had about 1% of the high-net worth market.
The sale is seen as progress towards the goals and targets outlined by Goldman at its investor day in February.
The sale will allow Goldman to focus on its ultra-high net worth wealth management and workplace growth strategy.
– Goldman will continue to support high net worth clients through a strategic partnership with Creative Planning.
– Creative Planning is a Kansas-based registered investment advisor with over 2,100 employees and $245 billion in assets under management and advisement.

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