Goldman Sachs unloads another business acquired under CEO David Solomon

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David Solomon (centre), Chief Executive Officer of Goldman Sachs during an lawsuit attended by Prime Minister Rishi Sunak astatine the Business Roundtable during his sojourn to Washington DC successful the US connected June 8, 2023 successful Washington, DC.

Niall Carson | WPA Pool | Getty Images

Goldman Sachs said Monday that it agreed to sell its idiosyncratic fiscal absorption portion to a rival named Creative Planning.

The transaction is expected to adjacent successful the 4th fourth of this twelvemonth and "result successful a gain" for New York-based Goldman. The slope declined to disclose the merchantability terms for its PFM business.

Goldman acquired a squad of astir 220 fiscal advisors managing $25 cardinal successful assets successful May 2019, erstwhile it announced the $750 cardinal acquisition of United Capital Financial Partners. At the time, CEO David Solomon heralded the woody arsenic a mode to broaden Goldman's scope beyond the ultra-rich clientele that is its main spot to those who are simply wealthy, with possibly a fewer cardinal dollars to invest.

But amid Solomon's propulsion to unload oregon shutter respective businesses tied to his ill-fated retail banking plan, the PFM concern was deemed excessively tiny successful the discourse of Goldman's larger aspirations successful wealthiness and plus management. Goldman said successful February that it lone had astir 1% of the high-net worthy market, oregon those who person betwixt $1 cardinal and $10 cardinal to invest.

"This transaction is advancement toward executing the goals and targets we outlined astatine our capitalist time successful February," Marc Nachmann, planetary caput of plus and wealthiness absorption astatine Goldman, said Monday successful a statement.

The merchantability "allows america to absorption connected the execution of our premier ultra-high nett worthy wealthiness absorption and workplace maturation strategy" portion continuing to enactment precocious nett worthy clients done a strategical concern with Creative Planning, helium said.

Creative Planning is simply a Kansas-based registered concern advisor with much than 2,100 employees and $245 cardinal successful assets nether absorption and advisement.

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