Goldman Sachs announced it will buy boutique wealth management firm United Capital Financial Partners for $750m (£585.54m) in a move to extend its offering to clients “across the wealth spectrum”.
United Capital, which has $25bn of assets under management, will join Goldman Sachs’ $500bn wealth management business that is comprised of Private Wealth Management and Ayco, which provides services to corporate clients.
The firm operates Finlife CX – a digital advisory platform – which will be used to strengthen the Ayco business and will be designed to complement the platform for Goldman Sachs’ consumer bank Marcus.
The deal, which is the investment bank’s biggest since the financial crisis, is expected to close in the third quarter of this year.
“We have a leading wealth management franchise, driven by our pre-eminent 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,” David Solomon, Goldman Sachs chairman and chief executive, said.
“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.”
Joe Duran, founder and chief executive of United Capital, will join Goldman Sachs as part of the acquisition.
Goldman Sachs & Co LLC is serving as financial advisor and Fried, Frank, Harris, Shriver & Jacobson is serving as legal counsel to Goldman Sachs.
Moelis & Company is serving as exclusive financial advisor and Kilpatrick Townsend & Stockton is serving as legal counsel to United Capital.