Goldman Sachs Lures $650M Morgan Stanley Group to Custody Platform


An advisor group in Braintree, Mass., with $650 million in shopper belongings, has left Morgan Stanley after eight years with the wirehouse to launch their very own registered funding advisor, Stablepoint Companions. The group, which is led by co-founders Christopher Griffith and Henry Wheelwright, has chosen Goldman Sachs Advisor Options as their major custodian.

“The analysis and funding insights we may have from Goldman Sachs are second to none, and a serious differentiator,” Griffith stated. “Additional, their white glove service ensures we aren’t slowed down, and at all times centered on our shoppers.” 

“The corporate’s prolonged observe report as each thought leaders on funding options, and progressive pondering was a superb match for each our shoppers and the group’s mission of reimagining and elevating the shopper wealth administration expertise,” Wheelwright stated. “The world is altering quickly, and we wished a agency that’s aligned with our purpose of constructive and progressive change for shoppers.”

Stablepoint represents the seventh group of serious scale to hitch the GSAS platform within the final couple months, stated Richard Lofgren, head of advisor engagement of GSAS. In July, Artistic Planning struck a multi-billion-dollar custody association with the agency.

“What we have seen notably this summer time is an actual pivot away from simply curiosity to dedication,” Lofgren stated. “I feel that this can be a realization for advisors simply as they’ve seen consolidation within the area, be it wirehouses or a number of the different custodians that they stated, ‘We actually need to make our personal decisions for our personal shoppers.’

The information comes two weeks after Goldman Sachs closed on the sale of its Private Monetary Administration unit to RIA Artistic Planning, which has revived the United Capital identify. That transfer additionally eradicated a number of the competitors that Goldman Sachs had internally with its RIA custody shoppers, additionally serving the mass prosperous market.

The sale of the PFM unit has generated extra curiosity within the custody platform, Lofgren stated. In a earlier interview, Padi Raphael, world head of the third-party wealth enterprise, stated the sale of PFM places a advantageous level on, “We don’t need to be an RIA. We don’t need to compete with RIAs. However we need to serve RIAs.”

On a current earnings name with analysts, Goldman CEO David Solomon stated the agency can now focus its efforts on serving ultra-high-net-worth buyers, coated by the agency’s Non-public Wealth Administration and Ayco companies. PFM served a mass prosperous clientele.

Lofgren stated Goldman shouldn’t be dedicating extra assets by way of individuals to his unit, however the concepts are flowing in.

“We’re seeing consideration and focus from the opposite divisions throughout the agency that notice and acknowledge that this can be a important development driver for the agency, and that it is a possibility for them to convey a few of their concepts and options and/or thought management over as effectively, too,” he stated.

In September, Goldman appointed Adam Siegler, head of the third-party wealth enterprise, Americas, inside the world banking and markets division, to steer the One Goldman Sachs Registered Funding Advisor technique, the agency’s coordinated effort to convey its capabilities throughout divisions to the RIA group.

“When you consider One GS, it is actually round permitting the advisors to select on that broad matrix or spectrum of capabilities that the agency can ship and determine, this piece of analysis is sensible, this piece from asset administration is sensible, this piece from a lending perspective is sensible, this from a custody standpoint is sensible and have us come collectively and produce these items for these clientele,” Lofgren stated. “And I might let you know—notably from what we’re seeing with the breakaway advisors as they’re popping out of a captive setting—is that they see the worth of the model, they see the worth of the excellence throughout all these totally different traces of enterprise.”

GS Choose, Goldman Sach’s securities-backed mortgage platform, is a type of capabilities. Lofgren stated the agency plans to develop that providing within the couple months to offer the power to lend towards issues that haven’t been lended towards earlier than, comparable to different investments. That might be unique to GSAS shoppers.


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