Goldman Sachs has agreed to sell its $29 billion Personal Financial Management (PFM) unit to Creative Planning, a Kansas-based Registered Investment Advisor (RIA). The move is part of Goldman's strategy to refocus on its core client base of ultra-high net worth investors. The sale is expected to positively impact the wealth division's finances and boost its profit margin. Creative Planning, one of the largest private investment advisors in the US, is well-positioned to take over Goldman's PFM unit.
Goldman Sachs has announced a deal to sell part of its wealth business to independent wealth manager Creative Planning as part of its strategy refresh, which involves exiting certain businesses and focusing on targeting the super rich. The sale is expected to close in Q4 and result in a gain for Goldman Sachs. This move follows CEO David Solomon's reorganization of the firm into three units last year and a scaling back of ambitions for its consumer business. Goldman Sachs' private wealth arm currently oversees $1 trillion in assets for ultra-high net worth clients, while the registered investment adviser being sold managed about $25 billion in funds.
Goldman Sachs has agreed to sell its personal financial management unit to competitor Creative Planning, with the transaction expected to close in Q4 2023. The sale is part of CEO David Solomon's efforts to unload or shutter businesses tied to the bank's retail banking plan. The PFM business was deemed too small in the context of Goldman's larger aspirations in wealth and asset management. Selling the unit will help boost profit margins in Goldman's asset and wealth management division. Creative Planning is a Kansas-based registered investment advisor with over 2,100 employees and $245 billion in assets under management and advisement.
Goldman Sachs has announced the sale of its Personal Financial Management (PFM) unit to Creative Planning, a leading Registered Investment Advisor (RIA) with over $245 billion in combined assets under management and advisement. Creative Planning will continue to have access to investment solutions and services from Goldman Sachs Asset Management as it builds its investment management platform. The transaction is expected to close in Q4 2023 and will result in a gain. This move aligns with Goldman Sachs' strategy to focus on ultra-high net worth wealth management and workplace growth, while Creative Planning aims to offer comprehensive planning and solutions for high-net-worth investors.
Goldman Sachs has agreed to sell its mass-affluent wealth management division, Goldman Sachs Personal Financial Management, to Creative Planning. The financial terms of the transaction were not disclosed, and the deal is expected to close in the fourth quarter of 2023. This marks the end of Goldman Sachs' venture into mass-market financial advice, which began with the acquisition of United Capital Financial Advisers in 2019.
