Goldman Sachs acquires United Capital in its largest deal in 20 years

By Nikita Chaurasia  Date: 2019-05-18

Goldman Sachs acquires United Capital in its largest deal in 20 years
  • With the proposed acquisition, Goldman Sachs aims to further consolidate its wealth-management business.
     
  • The move comes under the company’s ongoing effort to diversify itself away from trading; a troubled section of the bank in past few years.

The Goldman Sachs Group, Inc., (Goldman Sachs), a renowned American multinational investment banking firm, has reportedly announced its biggest acquisition in over 20 years, wherein it has procured California-based asset management boutique firm United Capital.

Reports cite, through the proposed acquisition, the New York based investment banking firm aims to further consolidate its wealth-management business. The move supposedly comes under the company’s ongoing effort to diversify itself away from trading; a troubled section of the bank over the past few years.

According to reports, the proposed deal is the company’s biggest since its acquisition of Spear Leeds in 2000, conducted by Hank Paulson; another investment banker. The latest deal is intended to fill up Goldman’s wealth offering and draw in more recurring form of revenue to a firm that still brings approximately over 60% of its top line through private investing & trading activities.

Major acquisitions such as these have become increasingly rare across the post-crisis era as more and more Wall Street firms are focusing on ways to avoid the wrath of politicians as well as regulators.

The CEO of Goldman Sachs, David Solomon stated that the proposed deal will accelerate the company’s wealth management strategy by widening its reach. Solomon further added that the said strategy would allow more clients to access the investment capabilities & intellectual capital of Goldman Sachs.

Under the terms of the agreement, the founder & CEO of United Capital, Joe Duran would be joining             Goldman Sachs. Moreover, United’s employees and over 220 financial advisors throughout the U.S. would also be coming onboard Goldman Sachs.

The proposed acquisition would reportedly be costing Goldman Sachs approximately $750 million.

 

Source Credit: https://edition.cnn.com/2019/05/16/investing/goldman-sachs-acquisition-united-capital/index.html

https://www.businessinsider.com/united-capital-goldman-sachs-deal-2019-5?IR=T&_ga=2.152017209.1416937372.1557999837-1007959535.155799983

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Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

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