Goldman Sachs is reportedly weighing the sale of a part of its wealth business catering to high net worth clients.
The company made the disclosure on this on Monday, as it announced plans to shift its focus back to serving the ultra-rich.
The Wall Street bank is evaluating alternatives for its registered investment adviser unit, called Personal Financial Management (PFM), which manages about $29 billion, the bank said in a statement, Reuters reported.
Goldman bought the registered investment adviser, formerly known as United Capital Financial Partners, for $750 million in 2019 when it managed about $25 billion in funds.
The purchase aimed to broaden Goldman’s client list beyond the ultra-rich, but the unit has remained a small part of the bank’s wealth business.
The company’s private wealth unit oversees $1 trillion in assets for ultra-high net worth clients.
The potential divestment comes after CEO David Solomon reorganised the firm into three units last year and scaled back ambitions for its loss-making consumer business.
Its fintech business, GreenSky, is also for sale, the Reuters report said.
Solomon has been under pressure to turn around Goldman’s fortunes after its profit sank 60 percent in the second quarter as write-downs on its consumer businesses and real estate investments weighed on earnings.
The bank plans to grow its core wealth business serving ultra-high net worth clients, reiterating aspirations from its investor day in late February.
Other core wealth businesses include workplace financial planning through Ayco, and Marcus savings, Goldman said.
Follow us on
