Goldman Sachs has announced that it will purchase a new fintech initiative. A boutique asset management initiative, Folio Financial manages a $ 11 billion portfolio.
As an investment bank, Goldman Sachs has officially announced its plans to purchase Folio Financial, a boutique asset management platform known especially for its innovative steps in asset management. The news of the purchase was revealed for the first time with the information e-mail sent by Folio Financial to its customers.
Virginia-based Folio has around 160 employees and manages a total of 11 billion assets. Folio, a registered investment management company, is a very small and boutique company compared to Goldman Sachs. Especially, besides the $ 509 billion asset managed by Goldman Sachs, it may not even be read. But the reason for the purchase is a little more technology oriented. Folio gives the impression of a fintech that has succeeded in realizing its digital transformation that adapts to innovations.
Founded in 2000, Folio offers its customers a digital asset management platform and serves through robo-advisors. Thanks to this digital services, the company has managed to attract the attention of Goldman Sachs. Negotiations that have continued since the middle of last year are now over and regulatory approval is expected for the deal to end. The acquisition is expected to close in the third quarter of 2020. We do not know how much Goldman Sachs paid for Folio at the moment, but this number will likely come to light after the deal is closed.
Folio plans to cross US borders with joining Goldman Sachs. The aim of the initiative is to acquire global customers and to open up the technologies developed to the world among the long-term goals of the company. Folio’s CEO, Steven Wallman, points to this in his email for his customers.