Goldman Sachs will contract for wealth management group


Goldman Sachs is closing in on a deal to buy investment management group United Capital Financial Partners as the Wall Street firm accelerates its push to spend money for middle America, two people familiar with the situation told the ft.

The deal is likely to see the traditional acquisition-incredible Goldman pay "around $ 750m" for California-based American capital, the people say, a small amount relative to the $ 73bn market valuation but still its biggest acquisition since the financial crisis. .

Grabs up $ 24bn in assets under management and more than 220 advisers spread across 95 offices, a Goldman prize as it expands its traditional business service to its super-rich, more mass-market wealth management business. The likes of Charles Schwab and Morgan Stanley.

"It is a national client base, a tan of offices, a very good track," one of the people said, "The United Capital of Philip" helps people live rightly "was a good culture fit with Goldman's wealth management business. Is building. Goldman's investment management business has $ 1.6 in assets under supervision.

Goldman declined to comment on the deal, which was first reported by the Wall Street Journal. American capital cannot be reached directly for comment.

For weeks after the new chief executive David Shlomo was appointed, Goldman announced plans to merge his fledged consumer bank Marcus with his investment management division to make a more coherent sales pitch for Major Street's wealth management business.

As Mr Solomon and his team work on a medium-term strategy that will take Goldman away from its investment bank Roots in more stable revenue sources, the Bank has also spoken of efforts to cross-sell more wealth management products through Ayco, a provider of services Of workplace financial counseling that it purchased in 2004.

"We need to grow (wealth management), which will be another part of it (the strategy)," one person familiar with Goldman's evolving design, which also includes creating a new money management business, refining its fixed-income trading. Operations and bring more outside capital into its alternative investments businesses.

In physical management, Goldman plans to use technology to reach a broad client set, initially in the US. There. And then the internationally added man, in comments echoed by some peers.

United Capital offers Goldman both a physical wealth manager and a digital tool FineLife, which American Capital says prize financial advisers to "blame for what clients deserve most – guidance that helps them live the life they want". The investment manager's future branding and integration will be considered part of Goldman's re-wealth management strategy, the man said.

United Capital has been effective for sale since January, when its chief executive and founder Joe Deron, a self-described yogi who thinks a prolific feel-good-twitter stream, said his company was looking for a "single partner", although Time he said a private equity firm is the most likely runner.

The deal comes just three months after Morgan Stanley made his biggest post-crisis M&A game with the $ 900m stock placement administrator Solium.

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