Goldman Sachs to sell part of wealth business to focus on ‘super-rich clients’ as it revamps strategy

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Also read: Goldman Sachs considers partial divestment of wealth business Goldman Sachs had acquired the registered investment adviser (RIA), formerly known as United Capital Financial Partners, for $750 million in 2019 when it managed approximately $25 billion in funds. The RIA business was relatively modest in size compared to Goldman's core business, which primarily serves ultra-high net worth clients.

Goldman Sachs can continue to serve high net worth investors through the RIA and other wealth management clients, such as Creative Planning, according to the bank. Creative Planning has a workforce of over 2,100 employees across its affiliates and manages combined assets under management and advisory totalling $245 billion.

Goldman's private wealth division oversees $1 trillion in assets for ultra-high net worth clients, individuals with $60 million or more in investable assets. High net worth individuals, who fall within the business segment Goldman is contemplating selling, typically have investable assets ranging from about $1 million to $10 million.

Also read: Goldman Sachs to layoff employees, including managing directors globally amid deals slump Marc Nachmann, Goldman Sachs' Global Head of Asset & Wealth Management, informed Reuters that the current strategy involves investing more in core businesses, such as ultra-high net worth and workplace growth strategies, using the proceeds from the sale. Goldman Sachs & Co LLC is serving as the financial advisor, and Weil, Gotshal & Manages LLP is serving as legal counsel to Goldman Sachs.