Goldman Sachs Group, one of the world’s leading investment banking companies, has recently announced the sale of its Personal Financial Management (PFM) unit to Creative Planning, a renowned Registered Investment Advisor. This move is expected to have significant implications for both firms and the wealth management industry as a whole.
Creative Planning is widely recognized as one of the largest Registered Investment Advisors in the United States, with a stellar reputation for its financial planning-focused investment management approach. With over $245 billion in combined assets under management and advisement, Creative Planning is poised to bring its expertise to the forefront in the wake of this acquisition.
One of the most notable aspects of this transaction is the access that Creative Planning’s wealth management teams will gain to investment solutions and services from Goldman Sachs Asset Management. This means that Creative Planning’s clients will now have access to a wider range of investment opportunities to help grow their wealth.
What’s interesting is that this isn’t the first collaboration between the two companies. Creative Planning had previously entered into a strategic custody relationship with Goldman Sachs Advisor Solutions, which allowed them to utilize Goldman Sachs’ custodial services. This strengthened partnership laid the foundation for the current acquisition, as both firms recognized the benefits of working together.
Goldman Sachs, with approximately $2.7 trillion in total assets under supervision, will continue to support Creative Planning advisors even after the acquisition is finalized. Through an expanded strategic agreement, Creative Planning advisors will still have access to Goldman Sachs’ investment solutions, ensuring that their clients receive the best possible service and support.
In addition to this deal, Goldman Sachs has outlined its plans to focus on expanding its proprietary wealth channels, including Private Wealth Management and Marcus Savings. These initiatives demonstrate the firm’s commitment to providing comprehensive wealth management solutions to its clients.
The transaction between Goldman Sachs and Creative Planning is expected to close in the fourth quarter of 2023 and result in a gain for both parties. Goldman Sachs is being advised by Goldman Sachs & Co. LLC as its financial advisor, while Weil, Gotshal & Manges LLP is serving as its legal counsel.
For more information, please contact Mary Athridge at +1 212 902 5400.
As the wealth management landscape continues to evolve, this acquisition marks a significant development in the industry. With Creative Planning’s expertise and access to Goldman Sachs’ investment solutions, clients can expect an enhanced investment experience that combines the best of both worlds.
