Podcast Center
Video Center
Webcasts
Resource Center
Events
By 
August 28, 2023 at 02:53 PM
Goldman Sachs and Creative Planning struck a deal on Monday for the RIA to buy the former United Capital business for an undisclosed sum, with industry experts largely praising the deal.
“It’s a good move for all three firms,” said Mark Tibergien, a management consultant and the former head of BNY Mellon Pershing Advisor Solutions. “This fits more into the [business] model of Creative Planning. It makes sense.”
As for Goldman Sachs, its attempt at “getting into the retail [wealth] business was probably a dilution of its core strategy. Sometimes you do not need to go wider — just deeper,” Tibergien explained.
On the down side, “It’s unfortunate that the folks employed by United Capital had to go through this. [Its former CEO] Joe Duran probably did well, and Creative Planning should do well. This is what happens when you take risks,” he added.
Other industry watchers agree.
With this move, Creative Planning CEO Peter Mallouk “has nailed it,” said Morgan Ranstrom, head of Trailhead Planners, a national RIA.
“A firm like the former United Capital, which puts financial planning first, was an unnatural fit for a bank like Goldman that historically has made money on high-end brokerage operations, investment banking, etc.,” Ranstrom explained.
“Creative Planning has been very successful and a creative acquirer (no pun intended). Its prior acquisition of the Lockton [defined contribution] business was also savvy,” said Chip Roame, head of Tiburon Strategic Advisors.
“The risk here would be the loss of advisors, but the reality here is that those advisors are going to an independent RIA, at least somewhat akin to [the former] United Capital. … So maybe I think there is less risk of advisor loss here,” Roame added.
See: Goldman to Sell Former United Capital Unit to Creative Planning
