The world is minting millionaires quicker than Goldman Sachs can keep up with them — and it’s making a fortune off of them (GS)

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Goldman Sachs’ private wealth management business is bustling, adding $17 billion in long-term assets in 2017.
The firm’s 700 wealth advisers each generate a staggering $4.5 million in revenue on average.
CEO Lloyd Blankfein expects the business to keep growing as the world continues to churn out more millionaires.
“The world seems to be growing rich people faster than we can grow advisers to cover them,” Blankfein said.

Business is good if you’re a wealth adviser at Goldman Sachs, as millionaire clients are popping up quicker than the bank can keep up with.

Business is humming in general at Goldman Sachs — the firm reported a healthy $32.1 billion in revenues last year — apart from the firm’s fixed income trading business, a former profit center whose recent struggles have been well chronicled.

But the firm’s private wealth management business is especially bustling, adding $17 billion in long-term assets in 2017, up from the $12 billion it added in 2016, according to a presentation given by CEO Lloyd Blankfein Tuesday at the Credit Suisse Financial Services Forum.

“Wealth creation is expanding at a fast clip, and given the strength of our offering and brand, we haven’t seen the limits of where this segment of the market can grow,” Blankfein said at the conference.

The investment bank has just over 700 private wealth advisers who brought in a staggering $4.5 million in revenue each on average — which is “much higher than our large bank competitors,” Blankfein added. That works out to more than $3.1 billion in revenue driven by advisers.

Rival Morgan Stanley generates far more absolute revenue from wealth management — about $16.8 billion in 2017 — though it takes an army of more than 15,700 advisers who serve a much broader and less affluent client base. The bank reported $1.1 …read more

Source:: Business Insider


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