Goldman Sachs David Solomon

Goldman Sachs agreed to pay $750 million in cash to buy United Capital, a registered investment adviser with 220 wealth managers and $25 billion in assets under management.
The deal is the biggest for Goldman since its $6.5 billion purchase of Spear Leeds in 2000. It’s scheduled to close in the third quarter.
Goldman’s purchase is part of a push to bring in more stable revenue, which is valued more highly by Wall Street analysts and investors than the more episodic revenue that comes from trading and private investing activities.
The bank’s stock has lagged broader indexes, in part because of its reliance on the types of volatile businesses that investors discount.
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David Solomon is wasting little time.

The Goldman Sachs CEO, an investment banker who took over from Lloyd Blankfein last October, inked the bank’s largest deal in more than 15 years on Thursday, announcing the $750 million purchase of the United Capital wealth management firm.

The transaction is intended to fill in Goldman’s wealth offering and bring in more recurring revenue to a firm that still gets more than 60% of its top line from trading, and private investing activities.

More broadly, …read more

Source:: Businessinsider – Finance


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