Goldman Sachs Asset Management is going to continue to provide investment solutions and services to Creative’s wealth management teams even while the company develops an innovative investment management platform.
With over 2,100 people spread throughout its affiliates and $245bn in assets under management and advisory, Creative is a Registered Investment Advisor (RIA) in the sector.
Creative and Goldman Sachs Advisor Solutions (GSAS) established a strategic custody partnership in July 2023.
Goldman Sachs offers a wide range of investment solutions across all significant asset classes, with over $2.7trn in total assets under supervision (AUS).
Through its third-party wealth division, Goldman Sachs Asset Management collaborates with wealth managers like Creative to provide specialised solutions and public and private alternative products for high-net-worth investors (HNW).
For the particular requirements of their clients, GSAS provides independent advisors with access to institutional-grade solutions, custody, banking, and lending services.
The deal is anticipated to be profitable and to finalise in the fourth quarter of 2023.
“This transaction is progress toward executing the goals and targets we outlined at our investor day in February. It is margin accretive to Asset & Wealth Management and allows us to focus on the execution of our premier ultra-high net worth wealth management and workplace growth strategy and to serve HNW investors through RIA and other wealth management clients, such as Creative Planning. We will continue to support PFM and other Creative advisors with access to our investment solutions through our expanded strategic agreement,” said Marc Nachmann, Goldman Sachs global head of asset & wealth management.
Peter Mallouk, president & chief executive officer of creative planning added: “Building on our existing custody relationship with Goldman Sachs Advisor Solutions, an expanded partnership with Goldman Sachs is a natural, strategic fit. We welcome the talented advisors from PFM as we remain committed to being the leading advisor in the independent space. Together, we will offer HNW investors comprehensive planning, and a broad set of solutions related to wealth and investment management. We welcome the talented advisors from PFM as we remain committed to being the leading advisor in the independent space. Together, we will offer HNW investors comprehensive planning, and a broad set of solutions related to wealth and investment management.”
Goldman Sachs outlined intentions to continue expanding its proprietary wealth channels, including Private Wealth Management (PWM), workspace (Ayco), the associated private banking and lending company, and Marcus Savings, at investor day earlier this year.
Weil, Gotshal & Manages LLP is acting as legal counsel to Goldman Sachs, while Goldman Sachs & Co. LLC is acting as financial advisor.