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Goldman CEO: Acquisitions in Wealth Mgmt Unlikely

January 21, 2021

After stating that Goldman Sachs is committed to growing its wealth management business, CEO David Solomon has indicated that it’s unlikely the bank will do so through acquisitions, according to news reports.

“We will continue to look for acquisition opportunities that can accelerate our investment in areas like wealth management, asset management and our digital consumer platform,” CEO David Solomon told Barron’s. “That said, the bar to do a big transformative deal is extremely high and I think it’s a relatively low likelihood.”

In a call earlier this week to discuss the firm’s fourth quarter earnings, Solomon said that hiring in Goldman’s consumer and wealth management business had slowed, as reported. The firm hired more than 100 advisors, content specialists and client service specialists last year, but that was fewer than it expected, the firm said in a presentation, attributing the results to the coronavirus pandemic.

But Solomon also told analysts that the firm “remain[s] committed to the growth potential” of its wealth management business.

In his interview with Barron’s, Solomon reiterated that he and the firm “are very confident and committed to our 2022 targets.” He also said that the wealth management arm catering to ultra-high-net-worth clients — those with at least $10 million to $15 million to invest — is the “preeminent ultra-high-net-worth business in the world,” according to the publication.

Solomon also said that only 10% to 13% of its New York employees are currently working from the office as a result of a new wave of Covid-19 cases in recent months, according to the publication. In October, around 20% to 25% of the area’s staff were working from the office, Barron’s writes.

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By Alex Padalka
  • To read the Barron's article cited in this story, click here if you have a paid subscription.
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