08.28.23

Goldman Retreat From RIA Market Shows Pitfalls of Chasing Varied Clients

by: Bruce Kelly

Goldman Sachs’ foray into the retail-focused wealth management business lasted just four years, as the bank announced that it was selling its registered investment advisor (RIA) business to refocus on the ultra wealthy. The shift in strategy shows how tough change can be for an institution like Goldman, industry sources said. In 2019, Goldman acquired United Capital Financial Partners for $750 million and then renamed it Personal Financial Management. The RIA unit targets high-net-worth clients, but not the ultra-wealthy, who have accounts with $20 million to $50 million and are the typical target client for the investment bank. Instead of focusing on the day-to-day business of financial advisors, Goldman will continue to work with them through its asset management and fund platform, as well as its nascent RIA custody business. The bank is looking to invest in RIA custody to gain scale with a broader group of financial advisors, a spokesperson said.

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