Goldman custody business gains steam with $1 billion add from Prime Capital

Goldman representatives say the custody operation is on track for success, but don't disclose details.

The Goldman Sachs custody business has notched another win in the form of a new relationship with Prime Capital Investment Advisors, a $20 billion RIA that has committed at least $1 billion to Goldman Sachs Advisor Solutions.

The Overland Park, Kansas-based RIA, which touts “18 months of impressive growth,” including “double-digit organic growth,” cited the ability to custody nontraditional assets as one of its reasons for choosing the Goldman platform.

“Our clients invest extensively in alternative assets, and we need a custodian with the capability to handle these investments at the service level our clients expect,” said Scott Duba, Prime Capital’s chief investment officer and managing director of wealth management.

“Goldman Sachs Advisor Solutions is enthusiastic about alternatives, and their fully digital platform offers a more sophisticated service tracker and online chat functionality, while still having direct access to their service team,” Duba said.

Over the past 18 months, Prime Capital has acquired 12 businesses, adding 43 advisors with more than $5.7 billion worth of client assets.

Prime Capital’s business has evolved into three primary business areas: Prime Capital Wealth Management, Qualified Plan Advisors and Financial Fitness for Life.

Duba didn’t answer questions regarding Prime Capital’s other custody partners, but it’s not unusual for larger RIAs to work with multiple custodians.

“We have and will continue to have strong relationships with other custodians,” he said. “As we expand, partnering with Goldman Sachs Advisor Solutions as an additional custodian helps us provide a broader range of tools, solutions and services, enabling our advisors to serve the complex financial needs of their clients.”

Goldman representatives refused to disclose details about the size and success of the firm’s custody business, which was officially launched earlier this year.

“We do not comment about assets custodied by specific business lines; however, our client assets are significant across the different wealth management segments,” said Cooper Rey, head of the RIA sales and trading, global banking and markets division at the custodian.

“The Goldman Sachs Advisor Solutions custody offering is a strategic focus area for Goldman, and we continue to invest significant resources into the growth of the business,” Rey added.

[More: Goldman Sach’s push into RIA custody gets going — finally]