Goldman Sachs is continuing to expand its custody service further as Sargent Investment Group (SIG) plans to transfer most of its clients’ assets to Goldman Sachs Advisor Solutions by the end of the year. Located in Bethesda, Maryland, the investment firm mainly caters to high-net-worth clients that require personalized services.
According to Managing Principal, Chris Rhyne, the addition of Goldman Sachs will be beneficial to SIG because of Goldman’s ability to provide high-quality care to upper-class clients. The firm’s commitment to client loyalty and use of innovative technology will allow SIG to remain in line with current client demands.
Goldman Sachs Advisor Solutions (GSAS) has been gaining more advisor partners since the acquisition of Folio Financial in 2020. Its expansion has been particularly appealing to wealth management shops that serve wealthy clients.
“Our goal is to offer differentiation and preference for advisors who oversee clients with complicated financial necessities,” states GSAS Managing Director Richard Lofgren.
Goldman Sachs has continued to acquire various RIA partners since receiving a major triumph with Steward Partners earlier this year. At present, Steward Partners manages $23 billion in client assets. Prime Capital Investment Advisors, a $20 billion business, was one of the most recent RIAs added to Goldman’s roster last month.
Goldman Sachs Sees Record Inflows into Custody Business
Goldman Sachs’ custody business has seen a record influx of new clients in 2021, reflecting the bank’s efforts to compete against other custodians in the marketplace. Although the bank did not disclose specific figures for the number of advisors using the platform or the total client assets being held, it did confirm that it had recently added wealth management firm Sargent Investment Group to its portfolio of users.
Many RIAs who sign up to work with Goldman use the GSAS platform as one of several processing options. This allows advisors to choose the fees and services that best suit their clients.
Sargent Investment Group reported that it intends to move “the majority” of its client assets to Goldman’s custody platform, with high-net-worth clients accounting for over $870 million of the approximately $1 billion the firm handles.
Goldman’s digital-first approach to custody services and its wide range of investment opportunities were cited as important factors in Sargent’s decision to choose GSAS as its primary custodian. The two firms share a focus on providing customized solutions for wealthy families, and Sargent’s leadership team expressed confidence that both firms would work together well to enhance the client experience.
