Goldman Sachs has agreed to acquire American boutique wealth management firm United Capital Financial Partners in a cash deal valued at $750m.
The deal will add 22,000 clients and $25bn of assets under management to Goldman Sachs’ portfolio.
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United Capital employs more than 220 financial advisers and has over 90 offices across the US.
It also operates digital platform FinLife CX, which helps independent advisers to grow their business and bolster relationships with their clients.
Goldman Sachs currently works primarily with those with at least $25m in net worth. This deal is said to be part of its strategy to attract the mass affluent through technology and human-influenced investment platform.
Goldman Sachs’ wealth management business is comprised of Private Wealth Management and Ayco, which jointly have nearly $500bn of assets under supervision.
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By GlobalDataRecently, Goldman Sachs has made a series of investments into fintech platforms. This week it made an undisclosed investment in German wealth technology startup Elinvar.
In January, it led a £45m funding round into Nutmeg, the UK’s largest digital wealth manager.
Commenting on the deal, Goldman Sachs chairman and CEO David Solomon said: “We have a leading wealth management franchise, driven by our preeminent Private Wealth Management and Ayco offerings, which will serve as a cornerstone of our business as we execute on our long-term strategy to offer clients solutions across the wealth spectrum.
“United Capital will help accelerate this strategy by broadening our reach, allowing more clients to access the intellectual capital and investment capabilities of Goldman Sachs.”
United Capital founder and CEO Joe Duran will join Goldman Sachs as part of the deal.
The deal, subject to customary regulatory approvals, is expected to conclude in the third quarter of this year.
