Goldman Sachs to Buy Wealth Management Custodian Folio Financial
The Goldman Sachs Group Inc. has agreed to purchase Folio Financial, a wealth management custodian and financial technology company, in its latest bid to expand its wealth management business.
The Goldman Sachs Group Inc. has agreed to purchase Folio Financial, a wealth management custodian and financial technology company, in its latest bid to expand its wealth management business, as first reported by Reuters. The acquisition is expected to close in the third quarter of 2020.
Folio Financial was founded in 2000 by Steven Wallman, a former commissioner of the Securities and Exchange Commission.
“This transaction is another landmark event in Folio’s history, as it will further enhance our innovations and bring scale to our business, particularly in the execution, clearing, and custody space,” said Wallman in a letter sent to Folio customers on Thursday. “Goldman Sachs and Folio share a commitment to serving the needs of our clients and to expanding the scope of sustainable, responsible, and impact investing. The combination of Folio’s patented technologies and services with Goldman Sachs’ investment solutions and access to global resources will create material value for our clients.”
Folio Financial is based in McLean, Virginia and has roughly 160 employees and $11 billion in assets under custody for registered investment advisers.
According to Reuters, both companies declined to comment on the price of the acquisition, as it was “not material information for investors.” Companies must disclose the price paid for acquisitions worth $500 million or more.
Last year, Goldman Sachs purchased United Capital Financial Partners Inc., a registered investment advisor with $25 billion of assets under management, for $750 million in cash.
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.
