Prime Capital Funding Advisors, a quickly rising RIA agency with greater than $20 billion in shopper belongings, has added Goldman Sachs Advisor Options as a custodian to supply extra alternatives and companies for advisors and shoppers, with plans to maneuver $1 billion in belongings to the custodial platform.
“We imagine GSAS’s digital-first, tech-forward strategy to custody, mixed with their lending and personal funding capabilities, will allow us to supply our shoppers and advisors with assets on par with the biggest non-public financial institution and wirehouse platforms,” PCIA Managing Director and CIO Scott Duba stated in a press release.
Belongings the agency anticipates bringing onto the GSAS platform will come from a mixture of natural development, current belongings and deliberate inorganic exercise, Duba stated. “PCIA has made this one in all its high priorities and, whereas we can’t predict how shortly the method will unfold, what we will share is that we view GSAS as a key strategic companion going ahead.”
Goldman Sachs executives say they have been an energetic custody supplier since its acquisition of Folio Monetary in September 2020 and have onboarded new RIA groups past the legacy Folio shoppers.
In June 2021, Goldman Sachs Advisor Options scored its first custodial shopper for the reason that Folio acquisition, hybrid RIA Steward Companions. Late final yr, a $1 billion Beverly Hills, Calif.-based breakaway crew from Merrill Lynch selected Goldman as its sole custodian. In January of this yr, the custodian added a crew of advisors led by Margaux Fiori that departed Raymond James’ unbiased contractor division to launch their very own RIA.
In February, a bunch of founding advisors got here collectively to type United Advisor Group, a brand new RIA and aggregator, selecting Goldman as its main custodian.
Some printed experiences have stated that Goldman is lagging behind a deadline it had for the RIA custody service, however Goldman executives stated the agency has by no means publicly expressed any “time line” and there’s unlikely going to be a ribbon-cutting kind of unveiling at any particular date sooner or later; as an alternative, executives stated to anticipate a quiet, steady iteration of the service.
In a earlier interview with WealthManagement.com, Jeremy Eisenstein, co-head of the RIA custody gross sales crew inside GSAS, stated the unit has been targeted on bringing Goldman’s funding capabilities, together with its institutional-level entry to options, lending, capital markets and its funding analysis and insights—to RIAs.
PCIA, which additionally custodies with Schwab, Constancy and others, formally launched in early 2018 with $2.8 billion in shopper belongings, following a administration buyout of 30-year-old Lawing Monetary by a bunch of 5 advisors the yr earlier than. After promoting a 20% minority stake to personal fairness agency LNC within the fall of that yr to fund development initiatives, the agency started actively recruiting gifted advisors—primarily from the wirehouses.
At this time, PCIA contains three manufacturers: Prime Capital Wealth, its RIA; Certified Plan Advisors, a retirement plan advisory enterprise serving greater than 1,100 retirement plans; and Monetary Health for Life, a monetary schooling service out there to retirement plan sponsors inside and out of doors of the Certified Plan community.
Based mostly in Overland Park, Kan., PCIA at present serves greater than 10,500 shoppers throughout 62 areas nationwide.
The agency has been rising organically at a fee of round 12% a yr, in line with CEO Glenn Spencer, and added 43 advisors over the past 18 months alone. The addition of Goldman is supposed to extend alternatives and entry for the agency’s 300 workers, together with greater than 150 advisors.
“We’re dedicated to offering differentiation and selection for advisors, which aligns with PCIA’s philosophy,” stated Cooper Rey, head of RIA gross sales and execution for GSAS. “We’re delighted Prime Capital has put their belief in us, recognizing how our expertise, individuals, and entry to Goldman Sachs enhances their current partnerships and enhances their advisor companies.”
Within the spring of 2020, a personal, particular person investor purchased out LNC’s stake and the agency established a credit score facility. After recapitalizing in October of the next yr, PCIA started providing fairness to workers.
PCIA workers now maintain round 12% of the agency’s fairness, together with a handful of smaller non-public buyers, whereas a fifth remains to be owned by a personal particular person and the rest belongs to agency administration.
“Almost each advisor has fairness possession,” stated Spencer. “The thought of collaboration and being a collegial, collaborative, skilled companies agency is necessary, and I feel our possession construction actually drives that.”