The Goldman Sachs Group Inc. (NYSE: GS) has agreed to acquire United Capital Financial Partners Inc., a registered investment advisor with $25 billion of assets under management, for $750 million in cash. The transaction is expected to close in the third quarter of 2019.
United Capital has more than 220 financial advisors serving 22,000 clients in 90-plus offices across the United States. The firm also operates FinLife CX, a digital platform that helps independent advisors grow their businesses.
“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,” said David Solomon, chairman and CEO of Goldman Sachs. “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.”
The acquisition will expand Goldman Sachs’ wealth management business, which is comprised of private wealth management and Ayco that together have nearly $500 billion of assets under supervision.
Goldman Sachs Private Wealth Management providing advice and investment solutions to high net worth individuals, families and endowments. Ayco provides financial counseling and investment management services to corporate executives and employees, serving more than 400 companies, including approximately 60 of the Fortune 100.
As part of the transaction, Joe Duran, founder and CEO of United Capital, will join Goldman Sachs. United Capital employees, including its advisors in offices across the United States, will also join the firm.
The Goldman Sachs Group is a leading global investment banking, securities and investment management firm that provides financial services to a client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.