Goldman Sachs, despite abandoning plans for a mass affluent sales force, remains committed to expanding its presence in the wealth advisory sector. President and Chief Operating Officer John Waldron emphasized the firm's continued focus on advisors, directing attention to both internal ultra-high net worth advisors and those at rival firms. The strategic shift entails targeting opportunities within third-party wealth platforms, including wirehouses and registered investment advisors (RIAs), highlighting a collaborative approach with competitors like Morgan Stanley & Co. and UBS Group AG, despite the unconventional alliances this may entail.
The firm's asset management division, a key player in this strategy, has seen significant revenue growth, contributing $3.8 billion in the first quarter of the year, up 18% year-over-year. This expansion includes distributing products through an expanding RIA custody unit and forming partnerships with firms such as Raymond James Financial. Goldman Sachs aims to leverage these partnerships alongside its existing private wealth unit to drive future growth, positioning itself strategically within the evolving landscape of wealth management.
