Goldman Pulls In $80 Million a Week From High-Net-Worth ClientsNovember 17, 2020
Goldman Sachs Group Inc.’s business catering to high-net-worth individuals has seen a surge in new assets since itbought registered investment adviser United Capital for $750 million last year.
The bank’s personal financial management unit is bringing as much as $80 million a week in assets, or double its average before the acquisition, according to Joe Duran, a founding partner at United Capital who now runs the business at Goldman. The growth is driven by referrals from existing customers, private wealth advisers who handle ultra-rich clients, and Ayco, the bank’s financial-planning business for corporate executives.
“We have more leads than we can service,” Duran told a CB Insights fintech conference Monday. “We probably are looking to expand more in the Midwest, especially the northern Midwest, and the Southeast around the Carolinas.”
The business has 100 locations with a strong presence in major cities on the East and West Coasts, in Florida and Texas, Duran said. It’s planning to open more offices in secondary cities and will probably hire individual financial advisers, rather than making acquisitions, while also adding staff from within the bank.
Goldman Sachs Personal Financial Management rebalanced portfolios in March, enabling investors to benefit from this year’s stock-market rally. As its clients search for higher yields from bond holdings, some are seeking out real estate investment trusts or alternative fixed-income that can generate more than 5%.
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