Goldman Sachs unveiled new wealth management brand on Investor Day

  • Goldman Sachs highlighted “Goldman Sachs Personal Financial Management” as a new brand in consumer and wealth management in a presentation on Wednesday for its very first investor day.
  • United Capital’s rebranding underscores its efforts to reshape its image in the eyes of investors and more Main Street customers, a departure from the historically very rich customer base it has long been focused on.
  • At an industry-wide level, it also underscores the drive of the wealth management business to rename historically opaque or isolated services and appeal to a wider range of customers.
  • Gregg Lemkau, co-head of investment banking, said Wednesday that the company “counts more than half a dozen current and former Spotify executives among its wealth management clients.” Goldman Sachs was among the banks that brought the music streaming company public two years ago through a direct listing.
  • Visit BI Prime for more wealth management stories.

Goldman Sachs highlighted “Goldman Sachs Personal Financial Management” as a new category in consumer and wealth management in a presentation on its very first investor day on Wednesday.

The new branding for United Capital, the registered investment advisor it acquired last year for $ 750 million, underscores its efforts to reshape its image and wealth business in the eyes of investors and more Main Street clients. It marks a departure from the historically very rich, isolated customer base that it has long targeted.

The New York Bank presentation by Eric Lane, its global co-head of the Consumer and Investment Management Division, included the banner on a slide detailing its wealthy expansion in the US – “Strong growth, US-focused business expanding “. Mode.”

This is a tier for customers with investable assets between $ 1 million and $ 10 million. The consumer group is for customers with less than $ 1 million in investable assets and $ 100,000 in median income, and Ultra High Net Worth is for customers with $ 10 million or more in investable assets.

“We have come a long way in the last 25 years,” Lane said on Wednesday in front of an audience of investors, analysts and journalists. When he joined the company in 1996, Lane found that the company had no consumer business.

goldman sachs


AP Photo / Richard Drew, file

It also highlighted plans around its Marcus digital bank that the company aims to transform into the “consumer bank of the future” alongside ultra-high-net-worth growth and expansion as one of the three main pillars of the division’s growth strategy. its high net worth platform.

Consumers (the wealthy masses) and wealth management (ultra-high-net-worth and high-net-worth) is a segment the company introduced earlier this month when it established a new structure for dividing financial results.

This includes “administration and other fees, incentive fees and results of deposit operations in connection with the company’s asset management business”, results of the provision of credit by the private bank; unsecured loans and deposits through Marcus; and credit cards, all previously reported to either Investment Management or the Investing & Lending group.

Lane also went through his unit’s hiring plans with financial advisors. Over the next three years, the company plans to grow its advisory pool in the Americas by 20% and in the Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) segments by 50%.

On an industry-wide level, the re-branding underscores asset management’s push to revamp historically opaque or isolated services and appeal to a broader group of younger clients with rapidly changing tastes.

Hightower, a Chicago-based wealth management company, said Wednesday it would be rebranding and adding a new tagline for the company: “well th. Rebalanced”. The “t” in Hightower was previously capitalized.

With reference to a “holistic” approach to financial “wellness”, the company resorted to one of the most popular buzzwords in the industry alongside “democratization”.

Business Insider also previously reported how California-based hybrid wealth management firm Personal Capital completely redesigned its branding last October to appeal to a more modern clientele.

Goldman Sachs’s wealth business also tends to cross-sell.

Gregg Lemkau, co-head of investment banking, said Wednesday that the company “counts more than half a dozen current and former Spotify executives among its wealth management clients.” Goldman Sachs was among the banks that brought the music streaming company public two years ago through a direct listing.

Investors appeared unimpressed with the company’s performance on Wednesday. Both the S&P 500 and a large publicly traded fund that tracks financial stocks rose in midday trading while Goldman Sachs stocks fell 1%.

The bank’s details of its plan to improve its return on real assets by 3% over three years were roughly in line with expectations, Brennan Hawken, an analyst at UBS, wrote in a customer announcement.

While “clearly constructive,” said Hawken, “this does not appear to be a dramatic change in the direction and approach of the business, nor do we expect it to result in a significant correction in projections in the short term.”

See also: Goldman Sachs just unveiled hundreds of slides depicting the future of the company. Here are the 10 crucial slides that show how she aims to transform herself into a bank for everyone.

Comments are closed.