SUMMARY
- Goldman Sachs parts with its personal financial management unit.
- 2019's $750 million acquisition sees a strategic change of hands.
- Move strengthens Goldman's focus on ultra-high net worth wealth management.
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Goldman Sachs dropped a headline of its own this Monday, revealing plans to hand over its personal financial management unit to rival firm, Creative Planning. This major move is on track to wrap up by year's end, with Goldman poised to profit from the transaction.
But here's the intriguing twist: Goldman didn't just stumble upon this unit. Rewind to May 2019 and Goldman shelled out a whopping $750 million to claim United Capital Financial Partners, a venture sporting a team of 220 financial mavens overseeing $25 billion.
While initially touted as a move to embrace the merely wealthy, not just the ultra-wealthy, CEO David Solomon later felt it was a tad too small-scale for Goldman's grand vision. Hence, this sell-off.
But there's more – the deal lets Goldman focus laser-sharp on its elite wealth management game, and they're not severing all ties. They'll still be in cahoots with Creative Planning, partnering strategically.
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