Prime Capital Funding Advisors, a quickly rising RIA agency with greater than $20 billion in consumer property, has added Goldman Sachs Advisor Options as a custodian to offer extra alternatives and providers for advisors and shoppers, with plans to maneuver $1 billion in property to the custodial platform.
“We consider GSAS’s digital-first, tech-forward method to custody, mixed with their lending and personal funding capabilities, will allow us to offer 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 an announcement.
Belongings the agency anticipates bringing onto the GSAS platform will come from a mixture of natural development, current property and deliberate inorganic exercise, Duba stated. “PCIA has made this certainly one of its high priorities and, whereas we can not predict how rapidly the method will unfold, what we are able to share is that we view GSAS as a key strategic associate 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 consumer because the Folio acquisition, hybrid RIA Steward Companions. Late final 12 months, a $1 billion Beverly Hills, Calif.-based breakaway group from Merrill Lynch selected Goldman as its sole custodian. In January of this 12 months, the custodian added a group of advisors led by Margaux Fiori that departed Raymond James’ impartial contractor division to launch their very own RIA.
In February, a bunch of founding advisors got here collectively to kind United Advisor Group, a brand new RIA and aggregator, selecting Goldman as its main custodian.
Some revealed 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 may be not going going to be a ribbon-cutting sort 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 group inside GSAS, stated the unit has been targeted on bringing Goldman’s funding capabilities, together with its institutional-level entry to alternate 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 consumer property, following a administration buyout of 30-year-old Lawing Monetary by a bunch of 5 advisors the 12 months earlier than. After promoting a 20% minority stake to non-public fairness agency LNC within the fall of that 12 months to fund development initiatives, the agency started actively recruiting gifted advisors—primarily from the wirehouses.
As we speak, PCIA includes 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 training service accessible to retirement plan sponsors inside and outdoors of the Certified Plan community.
Based mostly in Overland Park, Kan., PCIA at the moment serves greater than 10,500 shoppers throughout 62 places nationwide.
The agency has been rising organically at a charge of round 12% a 12 months, in response to CEO Glenn Spencer, and added 43 advisors during the last 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 know-how, folks, and entry to Goldman Sachs enhances their current partnerships and enhances their advisor providers.”
Within the spring of 2020, a non-public, particular person investor purchased out LNC’s stake and the agency established a credit score facility. After recapitalizing in October of the next 12 months, 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 traders, whereas a fifth remains to be owned by a non-public 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 providers agency is necessary, and I feel our possession construction actually drives that.”