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Goldman sells mass market wealth management business

Goldman sells mass market wealth management business

Goldman Sachs continues its retreat from the mass-market banking arena, selling off its Personal Financial Management (PFM) unit to Creative Planning.

Goldman acquired the PFM business for $750 million in 2019 as part of CEO David Solomon's push into the consumer market.

The unit caters to the mass affluent through an internal network of registered investment advisors. It currently manages $29 billion in client assets.

However, with Solomon now retreating from the consumer strategy, Goldman is selling PFM to Creative, a wealth management firm that recently entered into a strategic custody relationship with Goldman Sachs Advisor Solutions.

Goldman has already hived off digital bank Marcus and put the Apple credit card business into a new Platform Solutions unit alongside the firm's transaction banking operations and BNPL outfit Greensky, which is also reportedly for sale.

In January it reported that the Platform Solutions unit made a pre-tax loss of $1.2 billion in the first nine months of 2022.

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