The Wall Street bank, which did not disclose the sale price, said the sale to Creative Planning LLC is expected to close in the fourth quarter and result in a gain.
The latest sale is part of a shift in strategy after CEO David Solomon reorganized the firm into three units last year and scaled back ambitions for its consumer business, which lost $3 billion in the last three years.
Goldman bought the registered investment adviser (RIA), formerly known as United Capital Financial Partners, for $750 million in 2019 when it managed about $25 billion in funds.
Creative Planning has more than 2,100 employees across its affiliates and $245 billion in combined assets under management and advisory.
The RIA business was relatively small in size compared with Goldman's core business that focuses on the super rich.
Goldman's private wealth arm oversees $1 trillion in assets for ultra-high net worth clients, who have $60 million or more in investable assets.
High net worth individuals - who would fall within the business Goldman is considering selling - typically have about $1 million to $10 million to invest
Marc Nachmann, Goldman Sachs global head of Asset & Wealth Management, told Reuters the current strategy is to invest more on its core businesses such as ultra-high net worth and workplace growth strategy including the proceeds from the sale.
"We think there's a lot of space for us to grow. So we feel really good about it," Nachmann said, adding these plans are without a potential acquisition.
The bank can serve high net worth investors through RIA and other wealth management clients, such as Creative Planning, Goldman said.
Shares of Goldman Sachs were up 1.8% in afternoon trade.
Goldman Sachs & Co LLC is serving as financial advisor and Weil, Gotshal & Manages LLP is serving as legal counsel to Goldman Sachs.
Goldman is also pushing ahead with a sale of its fintech business, GreenSky and has also offloaded the bulk of its unsecured consumer loans after it halted this kind of lending last year.
