Inside Goldman Sachs' on-again, off-again custody play; a cacophony of false starts, pauses, delays, staff departures, technology glitches and morale issues bedevil RIA custody unit, RIABiz learns

Four years after buying Folio Financial, Goldman Sachs is testing the patience of RIAs, and maybe its own partners according to analysts and sources inside and outside the firm; but Goldman is preaching a new "optimism" and pledging lessons learned.

Author Oisin Breen March 5, 2024 at 4:52 AM

4 Comments

Richard Lofgren: 'I see enthusiasm and optimism every day.'

Brooke Southall and Keith Girard contributed to the editing of this article.

RIA Custodians

Alois Pirker

Black Diamond

Goldman Sachs

Greg O'Gara

Andrew Besheer

Richard Lofgren

Brenda

March 5, 2024 — 2:49 PM

I truly hope Goldman can make this work as their platform with Folio has so much potential. Thank you for letting us know what is going on behind the scenes as I have been curious.

Ron

March 7, 2024 — 1:48 PM

So much turnover and so many employees & advisors hurt along the way, I dont see how anyone can trust GS after how quickly they threw out the United Capital experiment. Who is to say this wont happen here too.

Hank

March 22, 2024 — 6:58 PM

The GS business will certainly fold, all thanks to the terrible management. Adam Siegler is a toxic oaf and Yun couldn't manager her way out of a paper bag. Anyone with another option has jumped ship and the group is a dead man walking.

Chris

April 24, 2024 — 5:05 PM

I would give them until end of 24’ maybe early 25’ until the GS business folds based on what I’ve heard from new advisors. Unfortunately it was a failed effort, but as long as Schwab and Fidelity can continue to invest in their businesses respectively it doesn’t make sense to custody at another firm, especially a new entrant like GS.

Related Moves

Seven 'RIA' chief executives are stepping aside for CEO 'operators' as PE backers get 'trigger' happy in adverse market; here are their stories

Whether it's Edelman Financial Engines, SMArtX, Allworth or InvestCloud, the re-CEO-ing process follows a fat 2020 capital raise and thinner results in stormy financial markets.

September 7, 2023 at 9:46 PM

Goldman Sachs RIA custody No.2 resigns, adding to an exodus at the unit, but insiders say this time the ship is showing signs of righting itself

Cooper Rey is the biggest loss to date, after handing in his notice Thursday morning, but Goldman also has good news after five recent custody wins.

July 23, 2024 at 1:40 PM

Carson Group legal drama discovered by Omaha media with settlement still on table • DPL annuity sales top $3 billion milestone, two months ahead of schedule • Potomac gets serious about Seinfeld • SSGA raids Schwab for technology executive

Carson case develops • After taking 58 months to sell its first $1 billion of annuities, DPL did its third billion in six months • Potomac's Christopher Norton promises to show fun side of RIAs and thanks F-word (fiduciary) video ban • SSGA has a new COO.

July 19, 2024 at 4:34 AM

Farther exhales then reveals that it has poached 10 advisors from Goldman Sachs since September, not without trepidation about poking the squid

The VC-backed RIA stared down legal perils to grab United Capital defectors but is now in 'good shape,' its CEO says, revealing that it grabbed 32 advisors in the past three quarters bringing it to $3 billion AUM

July 12, 2024 at 10:22 PM

See more related moves