GeoWealth on Thursday announced Goldman Sachs Asset Management made a $42.5 million minority investment in it that represents an expansion of its Series C financing round to support the firm’s growth, while also providing liquidity to shareholders.
GeoWealth said its family office owner, The Globe Resources Group, continues as majority owner, while Apollo, BlackRock, J.P. Morgan Asset Management and Kayne Anderson Capitol Advisors (sub-advised by Composition Capital) continue as minority investors.
GeoWealth attributed its growth to demand from large enterprise RIAs, success with its custom model portfolio partnerships and deeper relationships with current RIA partners.
“We’re pleased to welcome Goldman Sachs as a new investor and build on the strong partnership we’ve already established together,” Colin Falls, CEO of GeoWealth, said in a news release.
He added, “We’ve been very intentional about maintaining the right balance of investors—anchored by a majority family office owner that gives us the freedom to build the company on our terms—while also partnering with some of the world’s largest institutions that help us think strategically, grow thoughtfully and continue to innovate for our RIA partners.”
“GeoWealth’s technology platform empowers advisors to seamlessly deliver customized portfolios combining public-private investment solutions at scale to their clients, and this need will continue to grow,” said Bryon Lake, Partner and Global Co-Head of Third Party Wealth & Chief Transformation Officer at Goldman Sachs Asset Management. Lake will join GeoWealth’s board of directors.
He added, “Goldman Sachs Asset Management is committed to advisors and GeoWealth, and this will further our strategy to work collaboratively with client firms to deliver modern, sophisticated investment strategies and an excellent client experience.”
GeoWealth announced in August that it raised a total of $38 million in a Series C funding round led by alternative asset manager Apollo. The $38 million included the $18 million investment by BlackRock, J.P. Morgan Asset Management and Kayne Anderson Capital Advisors that was announced a year earlier, according to GeoWealth.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
