Goldman Sachs Group Inc said May 16 that it agreed to buy United Capital Financial Partners Inc for $750 million in cash. United Capital investors include Sageview Capital and Grail Partners. United Capital, of Newport Beach, California, is an RIA with $25 billion of assets under management and more than 220 financial advisors serving 22,000 clients in 90 offices across the U.S. Goldman Sachs & Co LLC served as financial adviser and Fried, Frank, Harris, Shriver & Jacobson LLP was legal counsel to Goldman Sachs. Bill Nook, Mark Karasik and Andrew Langer of Moelis & Co LLC advised United Capital while Kilpatrick Townsend & Stockton LLP was legal counsel.
GOLDMAN SACHS ANNOUNCES ACQUISITION OF UNITED CAPITAL
Acquisition Accelerates Wealth Management Strategy and Further Enhances Existing Ayco Financial Counseling Capabilities.
NEW YORK, NY – May 16, 2019 – The Goldman Sachs Group, Inc. (NYSE: GS) today announced it has entered into an agreement to acquire United Capital Financial Partners, Inc. for $750 million in cash. The transaction is expected to close in the third quarter of 2019, subject to customary regulatory approvals and conditions.
United Capital is a registered investment advisor with $25 billion of assets under management and over 220 financial advisors serving 22,000 clients in over 90 offices across the United States. United Capital also operates FinLife CX, a digital platform that helps independent advisors grow their business and form stronger relationships with their clients.
“We have a leading wealth management franchise, driven by our preeminent Private Wealth Management and Ayco offerings, which will serve as a cornerstone of our business as we execute on our long-term strategy to offer clients solutions across the wealth spectrum,” said David M. Solomon, Chairman and CEO of Goldman Sachs. “United Capital will help accelerate this strategy by broadening our reach, allowing more clients to access the intellectual capital and investment capabilities of Goldman Sachs.”
The acquisition will expand Goldman Sachs’ wealth management business, which is comprised of Private Wealth Management and Ayco that together have nearly $500 billion of assets under supervision. Goldman Sachs Private Wealth Management is the global leader in providing comprehensive advice and investment solutions to high net worth individuals, families and endowments. Ayco provides financial counseling and investment management services to corporate executives and employees, serving over 400 companies, including approximately 60 of the Fortune 100.
United Capital will enhance Goldman Sachs’ ability to cover a broad range of clients in Ayco’s growing corporate client base with financial planning solutions through an advisor-led, tech-enabled platform with considerable scale and geographic footprint. These efforts will complement the digitally-empowered consumer platform for individuals from Marcus by Goldman Sachs, and will ultimately provide a full-range of services across the wealth spectrum.
As part of the transaction, Joe Duran, Founder and CEO of United Capital, will join Goldman Sachs. The firm will also welcome the team of employees at United Capital, including its advisors in offices across the United States.
Goldman Sachs & Co. LLC is serving as financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal counsel to Goldman Sachs. Moelis & Company LLC is serving as exclusive financial advisor and Kilpatrick Townsend & Stockton LLP is serving as legal counsel to United Capital.
For more information on Ayco, visit https://www.ayco.com/.
About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
About United Capital Financial Partners
United Capital Financial Partners, Inc., the parent company of United Capital Financial Advisers, LLC (“United Capital”) and its consulting affiliate, is an independent financial life management firm, ranked #2 in the Barron’s 2018 list of Top 40 Independent Financial Advisors. United Capital is a registered investment advisor offering clients objective advice and an open architecture platform that enables a wide array of investment management solutions tailored specifically to client needs. United Capital AUM data is as of April 30, 2019.