Goldman Sachs has agreed to sell one of its personal financial management divisions as chief executive David Solomon continues to unwind a botched foray into consumer banking.
The unit, which has about 200 employees, is being sold to Creative Planning, an investment and retirement adviser. The division offers financial planning to well-off customers who are not super-rich, servicing individuals with accounts that tend to range from hundreds of thousands to millions of dollars.
Goldman did not disclose the terms of the transaction, which it expects to complete in the fourth quarter of the year, but said it would book a gain on the sale. The Financial Times had previously reported that Goldman was “evaluating alternatives” for the unit, which encompasses its registered investment adviser operations and supervises about $29bn in assets. The deal represents about 1 per cent of Goldman’s $2.7tn in assets under management overall.