Goldman Sachs Sells Personal Financial Management Unit to Creative Planning

The Goldman Sachs Group Inc. announced the sale of its United Capital Financial Partners Inc. division to Creative Planning LLC, the retirement plan advisory and wealth manager. The unit now called Goldman Sachs Personal Financial Management was acquired in 2019 for $750 million. It now has $245 billion in combined assets under management and advisement.

The transaction is anticipated to close in the fourth quarter of 2023. Creative’s wealth management teams will continue to have access to Goldman Sachs Asset Management’s investment solutions and services. In July, Creative Planning reported it has started a multi-billion-dollar strategic custody relationship with Goldman Sachs’ adviser solutions platform. Creative Planning advisers received access to Goldman Sachs Adviser Solutions “institutional grade” custody solutions. The services included GSAS’ middle and back office for alternative investments, electronic lending platform, advanced analytics and other product offerings.

Goldman made the sale of United Financial Partners Inc., CEO David Solomon said at the time, to enhance its private wealth offerings through its Ayco personal finance and workplace division, bringing more scale to wealth management solutions with “access to the intellectual capital and investment capabilities of Goldman Sachs.”

Goldman Sachs has since confirmed it is looking to pivot, moving away from direct investment and management of smaller personal financial management to focus on ultra-high-net-worth clients, as well as providing third-party services to the consolidating RIA space.

“This transaction is progress toward executing the goals and targets we outlined at our Investor Day in February,” Marc Nachmann, Goldman Sachs’ global head of asset and wealth management, said in a statement. “It is margin accretive to Asset & Wealth Management and allows us to focus on the execution of our premier ultra-high-net-worth wealth management and workplace growth strategy and to serve HNW investors through RIA and other wealth management clients, such as Creative Planning.”

“Building on our existing custody relationship with Goldman Sachs Advisor Solutions, an expanded partnership with Goldman Sachs is a natural, strategic fit,” Peter Mallouk, Creative Planning’s president and CEO, said in a statement. “We welcome the talented advisers from PFM as we remain committed to being the leading advisor in the independent space. Together, we will offer high-net-worth investors comprehensive planning and a broad set of solutions related to wealth and investment management.”

During an investor day earlier this year, Goldman Sachs outlined its intentions to further expand its proprietary wealth avenues, including Private Wealth Management, workplace services (Ayco), related private banking and lending operations and Marcus Savings.

Goldman Sachs & Co. LLC serves as the financial adviser, while Weil, Gotshal & Manges LLP provides legal counsel to Goldman Sachs.