(Reuters) -Goldman Sachs on Monday said it has struck a deal to sell an investment advisory business to wealth management firm Creative Planning LLC.
The Wall Street bank, which did not disclose the sale price, said the transaction is expected to close in the fourth quarter and result in a gain.
The latest sale is part of a shift in strategy after CEO David Solomon reorganized the firm into three units last year and scaled back ambitions for its consumer business, which lost $3 billion in the last three years.
Goldman bought the registered investment adviser, formerly known as United Capital Financial Partners, for $750 million in 2019 when it managed about $25 billion in funds.
Creative Planning is an independent wealth management firm with more than 2,100 employees across its affiliates and $245 billion in combined assets under management and advisory.
“It is margin accretive to Asset & Wealth Management and allows us to focus on the execution of our premier ultra-high net worth wealth management and workplace growth strategy,” said Marc Nachmann, Goldman Sachs global head of Asset & Wealth Management in a statement.
The bank can serve high net worth investors through RIA and other wealth management clients, such as Creative Planning, he said.
Shares of Goldman Sachs were up 1.3% in late morning trade.
Goldman Sachs & Co LLC is serving as financial advisor and Weil, Gotshal & Manages LLP is serving as legal counsel to Goldman Sachs.
Goldman is also pushing ahead with a sale of its fintech business, GreenSky and has also offloaded the bulk of its unsecured consumer loans after it halted this kind of lending last year.
(Reporting by Manya Saini in Bengaluru and Saeed Azhar in New YorkEditing by Marguerita Choy)