Goldman Sachs targets small borrowers with LPL Financial

Goldman Sachs partnered last year with Fidelity Custody and Clearing Solutions to provide securities lending services to smaller-sized clients.

By Joe Parsons

Goldman Sachs has onboarded LPL Financial, one of the US’ largest independent broker-dealers, to its securities lending platform, as it looks to increase its remit to smaller-sized wealth managers.

Clients of LPL Financial will be able to carry out securities lending transactions through Goldman Sachs Private Bank Select (GS Select), which was launched last year to target clients with less than $10 million in investable assets.

“LPL’s advisors will be able to expand their relationships with clients by helping them manage their borrowing needs as efficiently as they manage their investments,” said Andrew Kaiser, head of the Goldman Sachs Private Bank. 

LPL’s clients will be able to borrow up to $25 million, via a securities-backed loan, however they cannot reinvest it in other marketable securities.

The move is the latest for Goldman Sachs as it continues to target smaller-sized advisors and wealth managers for lending services.

Last year it partnered with US Bank and Fidelity Investment’s custody and clearing business (FCCS), which looks after small-sized brokerages, wealth mangers and family officers, to provide securities lending services to FCCS’ clients.

“Wealth management firms are increasingly asked to manage both the asset and liability side of a client’s balance sheet and are looking for a choice of lending solutions and providers, so we continue to see strong demand for these types of products,” said Mike Durbin, head of Fidelity institutional product at the time.

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