Goldman Near Deal For United Capital -- WSJ
May 11 2019 - 3:02AM
Dow Jones News
By Liz Hoffman
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 11, 2019).
Goldman Sachs Group Inc. is near a deal to acquire
wealth-management firm United Capital Financial Partners Inc.,
expanding its push into managing assets for individuals, according
to people familiar with the matter.
Goldman is set to pay several hundred million dollars for United
Capital, the people said. The deal, which could be announced as
soon as next week, would be its largest in nearly 20 years and
comes just seven months into the tenure of its new chief executive,
David Solomon.
Goldman has been making a push to diversify its businesses and
manage more money for clients, a steadier business than trading or
underwriting securities. The deal is the most tangible signal that
Mr. Solomon, a former deal banker himself, is looking to reshape
the firm he inherited in October.
Newport Beach, Calif.-based United Capital manages $24 billion
in client assets and has about 220 advisers. It would tuck into
Goldman's existing wealth-management business and would further its
goals of broadening that roster of clients to the less
affluent.
Currently, Goldman's roughly 450 private bankers manage $480
billion in assets, mostly for billionaires. The bank is working to
roll out a robo adviser -- an online service providing
computer-generated investment advice -- under its consumer-banking
brand, Marcus, that is aimed at managing money for the masses.
United's clients are most similar to clients of Goldman's Ayco
business, which is sold through corporate human-resources offices
and provides financial planning and advice to executives.
The deal isn't done and, as with any negotiation, could fall
apart. United Capital hired bankers at Moelis & Co. last year
to seek investors, and the bidding process included several
private-equity firms and at least one other bank, some of the
people said. Private-equity firms have eyed investment advisers
lately for their steady cash flow and the economies that come with
scale.
United Capital was founded in 2005 and has rolled up dozens of
small investment advisers. Its technology-heavy set of advisers
pitch not just stodgy stock advice, but counseling on how to "live
richly."
David Benoit contributed to this article.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
May 11, 2019 02:47 ET (06:47 GMT)
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