- Goldman Sachs Group Inc (NYSE: GS) announced it is buying wealth management company Folio Financial
Goldman Sachs Group Inc (NYSE: GS) announced it is buying wealth management company Folio Financial. The terms of the deal were undisclosed.
Folio — which is based in Virginia — runs several units like custodial services and securities trading. And it has about $11 billion in assets under custody for registered investment advisors (RIAs). Goldman Sachs Group Inc (NYSE: GS) is going to integrate Folio into the global markets unit.
This is not the only wealth management company that Goldman Sachs acquired recently. Last year, Goldman Sachs Group Inc (NYSE: GS) acquired United Capital for $750 million. United Capital was folded into its operations and branded to Goldman Sachs Personal Financial Management.
Why is Goldman Sachs buying Folio? Under the leadership of Chairman & CEO David M. Solomon, Goldman Sachs has been working on depending less on the investment banking unit of its operations. A few years ago, Goldman Sachs also launched Marcus — which is a high-interest online savings account.
“This transaction is another landmark event in Folio’s history, as it will further enhance our innovations and bring scale to our business, particularly in the execution, clearing, and custody space. Goldman Sachs and Folio share a commitment to serving the needs of our clients and to expanding the scope of sustainable, responsible, and impact investing. The combination of Folio’s patented technologies and services with Goldman Sachs’ investment solutions and access to global resources will create material value for our clients,” said Steven Wallman CEO of Folio Financial, Inc. “Joining with Goldman Sachs fulfills Folio’s long-term goal of partnering with a preeminent financial services firm to increase the reach and impact of the investment technology and services that many hundreds of people over the last two decades have dedicated their lives to creating.”
Discussions about the acquisition started in 2019. The deal is subject to regulatory approval and is expected in the third quarter of 2020.