Goldman Sachs plans to buy fintech platform and custodian Folio Financial for an undisclosed amount, according to a letter Folio sent to clients. The asset manager confirmed the deal, according to a Reuters report, and expects it to wrap up by Oct. 31.
“The acquisition represents the culmination of discussions that started in 2019 and the closing, while subject to regulatory approval, is expected in the third quarter of 2020,” Folio CEO Steven Wallman said in the letter.
Folio has 160 employees and $11 billion in assets under custody for RIAs. Goldman Sach’s Consumer and Wealth Management unit has about $510 billion of assets under supervision.
Thursday’s developments comes one year after news broke that Goldman was moving to acquire United Capital, a firm founded by Joe Duran with both a network of RIAs and its white-label wealth management platform used by RIAs, for $750 million.
It also comes less than a month after online broker Motif Investing closed its doors and announced it would transfer its client accounts to Folio Investing, which had been in talks with Goldman about a merger for the past year.