Goldman Sachs Wants to Grow its FA Ranks 30% by 2020
Goldman Sachs expects to grow its private wealth advisor force by around 210 reps in the next two years so that it can serve the growing ranks of millionaires, Business Insider writes.
The company currently has slightly over 700 private wealth advisors but plans to grow that by 30% by 2020, CEO Lloyd Blankfein said this week at the Credit Suisse Financial Services Forum, according to the web publication.
“The world seems to be growing rich people faster than we can grow advisers to cover them,” Blankfein said, according to Business Insider.
There are around 36 million millionaires today and that number is projected to reach 44 million by 2022, according to Credit Suisse data on global wealth cited by the publication. Goldman Sachs, meanwhile, caters to the ultra wealthy: the minimum account size in its private wealth management unit is $10 million, and Goldman’s typical client has $50 million or more, Business Insider writes.
The company’s advisor force pales in comparison to such rivals as Morgan Stanley, which has more than 15,700 advisors and generated about $16.8 billion from wealth management last year, compared to $3.1 billion generated in Goldman Sachs’ wealth unit, according to the publication. But the average Goldman Sachs advisor brought in $4.5 million last year, compared to $1.1 million for Morgan Stanley’s reps, Business Insider writes. Goldman Sachs grew long-term assets in its wealth unit by $17 billion last year, compared to $12 billion it added the year prior, Blankfein said, according to the publication.