Goldman Sachs Considers Partial Sale of Mass-Affluent Wealth Unit

Goldman Sachs is considering selling a chunk of its mass-affluent wealth management company, Goldman Sachs Personal Financial Management, as it shifts its attention to ultra-rich clients, according to media reports.

In 2019, the investment bank purchased the registered investment advisor, formerly United Capital Financial Partners, for $750 million when it managed about $25 billion in funds.

Personal Financial Management had $29 billion in assets under supervision as of the end of last year, according to the bank.

The acquisition was intended to diversify the bank’s customer base beyond the ultra-rich, but the unit has remained a minor component of Goldman’s total wealth management business.

Goldman is “currently evaluating alternatives for that business as we determine where to invest our resources and where we see the greatest opportunity. “We expect to find an outcome that benefits both our clients and our advisors,” the bank explained.

GreenSky, a fintech startup that provides home repair loans, is also apparently being considered for sale by the corporation. GreenSky was acquired by Goldman in late 2021 for $2.24 billion.

Goldman Sachs’ private wealth management business manages $1 trillion in assets for high-net-worth clients.