US-based investment banking company Goldman Sachs has agreed to sell its Personal Financial Management (PFM) unit to independent wealth manager Creative Planning (Creative).
Creative is a Registered Investment Advisor (RIA) with more than 2,100 employees across its affiliates and $245bn in combined assets under management and advisement.
The transaction is expected to close in the fourth quarter of this year, creating a large-scale investment management platform in the US.
Once the deal is closed, Creative’s wealth management teams will get access to investment solutions and services from Goldman Sachs Asset Management.
Creative Planning president and CEO Peter Mallouk said: “Building on our existing custody relationship with Goldman Sachs Advisor Solutions, an expanded partnership with Goldman Sachs is a natural, strategic fit.
“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.”
With around $2.7 trillion in total assets under supervision (AUS), Goldman Sachs provides a broad range of investment solutions across all major asset classes.
Last month, Creative signed a strategic custody relationship agreement with Goldman Sachs Advisor Solutions (GSAS), to offer institutional-grade custody solutions to its clients.
In addition to institutional-grade solutions, GSAS offers custody, banking, and lending services to independent advisors.
Goldman Sachs & Co. served as financial advisor, and Weil, Gotshal & Manages as legal counsel to Goldman Sachs on the transaction.
Goldman Sachs asset and wealth management global head Marc Nachmann said: “This transaction is progress toward executing the goals and targets we outlined at our investor day in February.
“It is margin accretive to Asset and 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.
“We will continue to support PFM and other Creative advisors with access to our investment solutions through our expanded strategic agreement.”
Last week, Creative announced the acquisition of CTB Financial Services, a Registered Investment Advisor (RIA) based in Minneapolis, Minnesota, US.
