Goldman Sachs explores retreat from mass market investing advice

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The firm is looking to sell an investment advisory business as it unravels CEO David Solomon’s ill-fated push into the mass market.

Goldman Sachs is exploring a sale of an investment-advisory business it bought four years ago, undoing another signature deal underThe bank is looking to sell the personal financial management business, which oversees about $US29 billion in assets and grew out of United Capital, a California-based registered investment adviser Goldman purchased for $US750 million in 2019.

“We are currently evaluating alternatives for that business as we determine where to invest our resources and where we see the greatest opportunity,” the New York-based bank said in an emailed statement Monday.While it’s a small part of Goldman’s wealth offering, the unit symbolised the earlier effort by Solomon to expand the firm’s business lines which are now being unwound.

Goldman has more than 16,000 clients and $US1 trillion of assets under supervision in its ultra-high-net-worth wealth-management unit, which houses United. The bank has pegged a key chunk of its growth plan on boosting its asset and wealth management business as it dismantled its retail effort after the once-ambitious foray racked up losses faster than it anticipated.

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