Goldman Sachs buys Folio to gain an RIA-custody toehold, and gets robo-advisors in the bargain, days after Schwab buys Motif

The New York powerhouse is uncertain about taking on Schwab and Fidelity in RIA custody, but it keeps making inroads where it can in retail wealth

Author Oisin Breen May 15, 2020 at 2:59 AM

3 Comments

David Solomon wants a digital age RIA play at the mass, high-net-worth advice business.

Goldman Sachs

Folio Institutional

Motif

Former employee

May 15, 2020 — 3:44 PM

This is a platform of last resort for many of the RIA's on it - cannot see them passing the credit committee at Goldman....Goldman overpaid by $200MM

Jeff Spears

May 15, 2020 — 8:27 PM

Goldman is playing a new game that I need to understand. Hope it is greater than custody as IP and the Goldman brand should Trump the price sensitive crowded custody field.

Brian Murphy

May 18, 2020 — 5:23 AM

To me this is evidence that the value of the rails on which investment advice is rendered, are collapsing. If one is an entrepreneur providing services that include custodial, or even services to advisors, the writing is on the wall. The value of what you have been creating is declining. The key going forward is to create new, more compelling offerings to the end user...not intermediaries.

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Goldman Sachs fought the squid, but the squid won as CEO David Solomon puts the United Capital-Ayco RIA back under the control of house asset managers

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Mentioned in this article:

Folio Institutional
Asset Custodian
Top Executive: Greg Vigrass