Goldman Sachs acquired Folio Financial

Goldman Sachs completed its purchase of Folio Financial , an execution, clearing and custody platform that serves independent Registered Investment Advisors (“RIAs”) across the wealth spectrum. Folio Financial has developed a differentiated technology offering that provides institutional grade clearing and custody services to RIAs. This will enhance the firm’s own offerings to RIAs while expanding its client base in that segment.

This acquisition combines Goldman Sachs’ decades of experience providing execution, clearing and custody capabilities to institutional and ultra-high net worth clients with Folio’s state-of-the-art technology offering across the RIA market.

Folio’s platform enables advisors to create customized and diversified portfolios in a scalable way. Looking forward, RIAs will have access to rich analytics and services through a comprehensive suite of Application Programming Interfaces (APIs), all part of a fully-integrated Goldman Sachs execution, clearing, and custody solution. Over time, this will further diversify the firm’s funding mix, and add durable recurring revenues to its Global Markets Division.

“The RIA space is large, estimated at roughly $5T, and fast growing. We are excited to integrate Folio’s technology platform with our client service expertise to broaden our franchise and expand our product offering to new and existing clients.”  – said Philip Berlinski, Global Chief Operating Officer of Goldman Sachs’ Equities Division.

“In 2000, Folio was created to revolutionize the way people invest. Through two decades of remarkable dedication by the devoted and talented employees of our firm, we evolved into a unique brokerage, custodian, and financial technology company, delivering advanced investment solutions to investors and the advisors that serve them. As part of Goldman Sachs, Folio will be ideally positioned to further innovate and reach even greater heights on behalf of our clients. With our shared pledge to improving the financial outcomes of those we serve; we now excitedly launch the next phase of our journey.” – Steve Wallman, founder and CEO of Folio Financial.

Additionally, after a strategic review of Folio Financial’s business lines, Goldman Sachs is announcing the following actions:

• With support from Goldman Sachs, First Affirmative Financial Network, LLC will operate as an independent, employee-owned company. This structure will allow First Affirmative to continue its core mission of enabling advisors to deliver financial results while leveraging the power of capital in bringing about lasting environmental and social change.

• The SRI Conference and Community, founded by First Affirmative, will remain with Goldman Sachs.  Under the leadership of First Affirmative and Folio Financial, the SRI Conference has grown into the world’s largest, longest-running, and preeminent ESG-focused conference. The SRI Conference and Community will complement Goldman Sachs’ commitment to ESG investing and thought leadership. More information will be provided on the event and other plans in the future.