Goldman Near Deal For United Capital -- WSJ

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 [e-mail]

(END) Dow Jones Newswires

May 11, 2019 02:47 ET (06:47 GMT)

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