Goldman Sachs agrees to sell financial planning unit

Goldman Sachs has sold its personal financial management (PFM) division as it continues to retreat from consumer banking.

The unit, which Goldman is now selling to investment and retirement adviser Creative Planning, has around 200 employees.

Goldman originally purchased the division for $750m in 2019 in a deal that CEO David Solomon saw at the time as a way for the company to broaden its reach beyond ultra-high net worth clients to include wealthy individuals.

“[This transaction] is margin accretive to asset and wealth management and allows us to focus on the execution of our premier ultra-high net worth wealth management and workplace growth strategy and to serve high net worth investors,” Goldman global head of asset and wealth management Marc Nachmann said.

“We will continue to support PFM and other Creative advisors with access to our investment solutions through our expanded strategic agreement.” 

The bank has not disclosed the sale price for its PFM business and the transaction is expected to close in the fourth quarter of this year and “result in a gain”.

Goldman has already sold $2bn of personal loans from its consumer unit Marcus, half of which went to alternative investment firm Varde Partners.