https://rischgroup.com/wp-content/uploads/2019/03/1_Zu6mcRfBNRhDz0Dvqhq9Fg.jpeg 539 1170 Dick Risch https://rischgroup.com/wp-content/uploads/2019/03/logodraft1-03-300x68.png Dick Risch2019-05-21 07:21:112019-05-21 08:09:23Goldman Buys United Capital in Move That Validates the RIA Biz
Once considered an upstart business model in the wealth management space, the RIA industry can now openly tout the ultimate of ultimate endorsements. With the sale of United Capital to the creme de la creme of wealth managers, Goldman Sachs, the RIA model is now front in center as an integral cog in the wheel of any firm that is building out a full fledged, end to end wealth management biz.
Goldman is paying $750m in cash for United, which has $25B AUM, $230M in revenue and about 100 offices. United also owns the FinLife CX digital platform and financial planning software tool.
“The primary reason Goldman did the deal was to grow and expand its reach” in the mass-affluent market, says Duran, who will personally reap at least $75 million in the deal for his stake in the company, which he says is between 11% and 19%.
Duran will become a Goldman MD, while remaining the CEO of United. He will report to Tucker York, the long time, and highly regarded head of Goldman’s wealth biz.
Will be interesting to watch the integration.