The North America market, centred on the US, is at the heart of Goldman Sachs’ leading private banking and wealth management business. The New York-based firm wins this year’s award for North America’s best private bank.
Why is it top dog in the region? One reason is that a focus on the top end of the wealth market fits nicely with the firm’s wider global capabilities, such as investment banking: again, largely revolving around North America but with a global franchise. The wealth management team, from that perspective, is the largest client at Goldman Sachs. Another answer is the committed and organic approach, which also fits well with the high end of the wealth market, where trust and person-to-person relationships matter most.
The bank has not chased passing fads, but rather focused on where it can add most value.
Goldman Sachs’ approach has demonstrated results in terms of growth over the past four years and in its home region – from both an assets and revenue point of view. Since 2020, it has added four new offices in the US: in Detroit, Austin, Denver, and Brentwood. It has also expanded its adviser footprint at home.
Although growth is higher today in percentage terms outside the US, the absolute growth volume is still bigger at home. And it still has room to grow further. The long tenure of team members means an exceptionally low employee churn rate – for good reason. Insiders in Goldman Sachs’ private bank like to think of the business as akin to the net present value of a long-term relationship. Group capabilities are vital to maintaining that relationship, but so are the individuals who developed the relationship on a personal basis over many years.
Goldman Sachs’ private wealth advisers have an average tenure of 15 years. They manage roughly a third of the number of clients compared to competitors. It has a 25-to-1 client-to-adviser ratio – that helps advisers to better understand client needs. It also results in high levels of client satisfaction – as evidenced by a 91% overall satisfaction rating in a recent global client survey.
Yet the firm is also bringing the franchise forward. Its mobile app allows clients to view portfolio highlights any time, initiate transfers, approve transactions and, in the US, request a certified cheque or deposit a cheque without leaving the app. American clients can also trade US equities and listed options on the mobile app.
What makes the bank stand out in North America is more than just its growing client franchise and distribution in its home market. It is also the depth of expertise in markets
The specialisation of teams is important. Apex, its dedicated family office coverage team, provides large and sophisticated family offices access to institutional deal flow, private market expertise and resources across the firm. The team demonstrates high levels of engagement with its wealth clients in the Americas, boosting wallet share, client retention, and inflows of assets under supervision.
What makes the bank stand out in North America is more than just its growing client franchise and distribution in its home market. It is also the depth of expertise in markets. Over the past decade and more, it has consistently recommended its clients remain fully invested in US equities. Alongside other recommendations around emerging market allocations, that has been a key driver of returns for clients in the US and beyond.
Its alternative investments offering is another strength, in North America and globally. It runs a full-service, open-architecture alternatives platform that includes sourcing managers, trading and providing liquidity for those investments, managing advisory portfolios, and advising clients. The team has become one of the largest allocators to alternative investments globally, investing more than $25 billion to private funds annually.
Meena Flynn and John Mallory are co-heads of global private wealth management, Goldman Sachs.
