Goldman Sachs considers selling part of wealth business
Goldman Sachs is considering selling part of its wealth management division, the RIA unit formerly known as United Capital Financial Partners, in a bid to shift its focus back to the ultra-rich, it said Monday according to a Reuters report.
The Wall Street titan’s RIA, since renamed Personal Financial Management (PFM), caters for the high-net worth and oversees approximately $29 billion in assets under management. This division was integrated into the Goldman portfolio through the acquisition of United Capital Financial Partners in 2019 in a deal worth $750 million.
While a clear effort to broaden the bank’s client base, PFM has retained a relatively modest presence in the overall business. Goldman’s private wealth unit, geared towards the ultra-high-net worth, safeguards a colossal $1 trillion in assets and has more than 16,000 clients.
Reuters reported that news of a potential sale comes after CEO David Solomon spearheaded a comprehensive reorganization, dividing the institution into three distinct units, while simultaneously scaling down the bank’s objectives for its consumer-oriented operations. The bank’s fintech venture, GreenSky, is also for sale.
Solomon is a man under pressure to reverse the storied bank’s fortunes after the bank’s second-quarter profits plummeted by a staggering 60%. This dismal performance was attributed to write-offs linked to its consumer-centric endeavors and real estate investments, which inevitably impacted earnings.
Solomon’s character is also under the microscope after he was the subject of a recent New York Magazine profile, headlined “Is David Solomon Too Big a Jerk to Run Goldman Sachs?” The Financial Times has since reported he retains board and investor backing amid an “internal
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