NEW YORK (Reuters) - Goldman Sachs Group Inc has signed LPL Financial Holdings, the largest U.S. independent broker-dealer by revenue, to its securities-based lending platform, the bank said on Tuesday.
Called GS Select, the platform was launched last year as a way for the Wall Street bank to target borrowers who have less than $10 million in investable assets. GS Select issues loans worth $75,000 to $25 million that are collateralized by the borrowers’ investment portfolios.
Goldman’s typical wealth clients have at least $50 million in assets. To reach “mass affluent” borrowers, the bank has forged relationships with mainstream wealth management firms who provide those clients with financial advice.
LPL provides technology, research and support to roughly 14,000 independent U.S. financial advisers who manage around 4 million client accounts. It is one of the largest firms to join the GS Select program, which currently supports 40 independent adviser firms and broker/dealers, according to a statement.
Last year, the bank announced it was partnering with Fidelity Investment’s clearing and custody business, which caters to small brokerages and wealth management firms.
Reporting By Elizabeth Dilts; Editing by Himani Sarkar