American investment bank and financial services company Goldman Sachs Group has agreed to offload its personal financial management (PFM) business to wealth management firm Creative Planning.
The financial terms of the deal were not revealed.
Headquartered in Kansas, US, Creative Planning and its affiliates have $245bn in combined assets under management and advisement.
The registered investment advisor (RIA) has over 2,100 employees across its affiliates.
Creative Planning CEO and President Peter Mallouk said: “Building on our existing custody relationship with Goldman Sachs Advisor Solutions, an expanded partnership with Goldman Sachs is a natural, strategic fit.”
According to Goldman Sachs, Creative Planning’s wealth management teams will continue to have access to investment solutions and services offered by Goldman Sachs Asset Management.
Creative Planning entered into a strategic custody relationship with Goldman Sachs Advisor Solutions (GSAS) in July 2023.
Goldman Sachs offers a wide range of investment solutions across all major asset classes and has nearly $2.7 trillion in total assets under supervision.
Goldman Sachs asset and wealth management global head Marc Nachmann said: “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.”
The deal is anticipated to be completed in Q4 2023.
Last week, Creative Planning acquired CTB Financial Services to bolster its expertise in tax planning and investment integration.
Through the acquisition of CTB Financial Services, Creative Planning aims to improve its ability to offer tax-efficient investment strategies to its client base.
