A wealth management firm in the Northeast was looking to enhance its services for clients and grow its practice. The mission was simple: for their firm to be better wealth managers and financial service providers, they wanted to help their clients by managing their assets and liabilities. To accomplish this pivot, they would need to be equipped to solve complex liquidity needs.
Through their custodian contacts, the advisors were introduced to their region’s business development representatives, where they learned about the various solutions available to solve for liquidity events. One of those solutions included the ability to offer securities-based line of credit, or SBLOCs. This type of financial product allows clients to access liquidity when they need it while keeping assets invested in the market. In short, SBLOCs helped accomplish the firm’s mission.
The advisors have since strategically established 11 Goldman Sachs Select lines of credit for clients’ liquidity needs, ranging from real estate investment to debt consolidation to other general household matters. This strategy saved close to $10 million of assets under management from liquidation and, through 3 refinances, obtained an additional ~$3 million in net new assets.