Strategy & Practice Management

Goldman Sachs purchase FinTech Folio Financial

Goldman Sachs Group (Goldman Sachs) are reportedly planning to purchase Folio Financial (Folio), technology-focused wealth management, brokerage and investment company.

Purchased for an undisclosed amount, the acquisition of Folio marks the second wealth management procurement made by the Group. The first, according to an article by Channel News Asia, was of United Capital, purchased for USD750 million in 2019, and rebranded as Goldman Sachs Personal Financial Management.

Of the acquisition of United Capital, Matt Crow, President, Mercer Capital, said: “Goldman sees lots of upside in being able to touch all aspects of the financial lives of a broad cross section of the global population.”

“Goldman had an enviable ultrahigh-net-worth franchise, but they didn’t have any footprint in high-net-worth or mass affluent. United Capital filled in that gap and gave them a place to start growing organically,” said Crow, written in an article by Financial Planning.

The acquisition of wealth management firms forms part of David Solomon, Chief Executive of Goldman Sachs, strategy to expand the bank’s capabilities in its other businesses.

Goldman Sachs have confirmed that the acquisition is taking place, however both firms involved have declined to comment on the specific financial details of the acquisition.

Folio reportedly has an AUM of USD11 billion. The firm was founded in 1999 by Steven Wallman, previously a Commissioner of the US Securities and Exchange Commission (SEC) from 1994 to 1997.