Goldman Sachs on Monday announced it is selling its wealth advisory division to Creative Planning, a registered investment advisor (RIA) and wealth manager with $245 billion in assets under management (AUM) and 2,100 employees.
The sale of Goldman Sach’s Personal Financial Management (PFM) unit to Creative Planning comes just a month after the Overland Park, Kan.-based RIA entered into a multi-billion-dollar strategic custody relationship with Goldman Sachs Advisor Solutions (GSAS).
Goldman Sach’s wealth advisory business works directly with wealth managers on customized solutions and public and private alternative products aimed towards high net-worth investors. Creative Planning’s wealth management teams will continue to have access to investment solutions and services from Goldman Sachs Asset Management, per a release on the acquisition.
Marh Nachmann, head of Asset & Wealth Management for Goldman Sachs, said the acquisition will help the firm invest more time in its premier ultra-high net-worth wealth management and workplace growth strategy. “We will continue to support PFM and other Creative advisors with access to our investment solutions through our expanded strategic agreement,” Nachmann said in a statement.
“Building on our existing custody relationship with Goldman Sachs Advisor Solutions, an expanded partnership with Goldman Sachs is a natural, strategic fit,” added Peter Mallouk, president & chief executive officer of Creative Planning. “We welcome the talented advisors from PFM as we remain committed to being the leading advisor in the independent space. Together, we will offer HNW investors comprehensive planning and a broad set of solutions related to wealth and investment management.”
Goldman Sachs originally purchased its PFM unit—formerly named United Capital Financial Partners—in 2019 for $750 million.
The transaction is expected to close in the fourth quarter of 2023. While neither Goldman Sachs nor Creative Planning disclosed the cost of the sale, a release from Goldman Sachs said the deal would result in a gain.
SEE ALSO:
- Creative Planning Inks Strategic Custody Deal with Goldman Sachs Advisor Solutions
- Creative Planning Buys CTB Financial
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.