The Goldman Sachs Group recently announced the sale of its Personal Financial Management (PFM) unit to Creative Planning (Creative). Creative is an industry-leading Registered Investment Advisor (RIA) and one of the largest in the country, with over 2,100 employees across its affiliates and $245 billion in combined assets under management and advisement.
Creative’s wealth management teams will continue accessing investment solutions and services from Goldman Sachs Asset Management as it builds a leading investment management platform. In July 2023, Creative entered a strategic custody relationship with Goldman Sachs Advisor Solutions (GSAS).
With about $2.7 trillion in total assets under supervision (AUS), Goldman Sachs provides various investment solutions across all major asset classes. And Goldman Sachs Asset Management partners with wealth managers, like Creative, through customized solutions and public and private alternative products for high-net-worth investors (HNW) through its third-party wealth business. GSAS provides independent advisors access to institutional-grade solutions and custody, banking, and lending services to support the unique needs of their clients.
The deal is expected to close in the fourth quarter of 2023 and result in a gain.
KEY QUOTES:
“This transaction is progress toward executing the goals and targets we outlined at our investor day in February. 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. We will continue to support PFM and other Creative advisors with access to our investment solutions through our expanded strategic agreement.”
— Marc Nachmann, Goldman Sachs Global Head of Asset & Wealth Management
“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.”
— Peter Mallouk, President & Chief Executive Officer of Creative Planning
