Goldman Sachs considers dissolving a portion of its wealth
ISLAMABAD: Goldman Sachs announced on Monday that it is considering selling a portion of its wealth business as it turns its attention back to serving the ultra-rich and away from high-net-worth clients in broad markets.
The Wall Street bank stated in a statement that it is considering alternatives for Personal Financial Management (PFM), an RIA unit that oversees around $29 billion. The change in tactics follows CEO David Solomon’s last year’s division of the company into three secti
Additionally, Goldman is moving forward with the sale of its fintech company, GreenSky, and has sold the majority of its unsecured consumer loans after ceasing this type of lending last year. Stephen Biggar, an analyst at Argus Research, stated that this was a part of the company’s larger Goldman Sachs considers dissolving a portion of its wealth that was aimed at returning it to its roots.
ons and scaling back of goals for its consumer sector, which lost $3 billion over the previous three years. “They’ve been unable to carve a path of profitability and scale” for the RIA, which catered to high-net-worth clients in mainstream markets outside of Goldman’s core, ultra-wealthy clientele, said Biggar.
Regarding PFM’s earnings, Goldman declined to comment. In afternoon trade, the company’s shares were down 1.4% while the S&P index of bank stocks was down 0.6%. When RIA, then known as United Capital Financial Partners, handled around $25 billion in assets in 2019, Goldman acquired it for $750 million.
Published in EDP BLOGS on August 22nd, 2023 .
