Goldman CFO eyes wealth management acquisitions in Europe

Goldman CFO eyes wealth management acquisitions in Europe
A buy would help it compete with UBS and Credit Suisse
JUN 06, 2019
By  Bloomberg

Goldman Sachs Group may seek to manage more of the fortunes of Europe's wealthy as the Wall Street brokerage looks to expand beyond the volatile returns of equity and bond trading. The company currently only has a "single-digit" share of the European wealth management industry, said CFO Stephen Scherr. An acquisition would help Goldman Sachs compete in an industry dominated by Swiss banks UBS Group and Credit Suisse Group. "There's an opportunity for us to grow our wealth management business more meaningfully in Europe," Mr. Scherr said. "If there was an opportunity for us to look at an asset that could accelerate our entry into wealth management in Europe, we would look at it." Executives at Goldman Sachs have been sketching out more details of how the firm plans to expand beyond its investment-bank division into more stable sources of revenue. The brokerage last month agreed to buy U.S. wealth manager United Capital for $750 million, one of its biggest deals in recent years, and is also targeting transaction banking and consumer services. Meanwhile, the company continues its "very cooperative" position related to the Department of Justice's probe into Goldman's dealings with Malaysia's state investment fund 1MDB, Mr. Scherr said. "I'd like to say we'll be in a position to resolve this quickly but we'll need to see how that plays in the rather constructive dialogue we're having with the Department of Justice in the U.S. and other regulators around the world." (More: What does a Goldman-owned United Capital mean for advisers?)

Latest News

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

Fintech bytes: Pontera and Opto Investments expand RIA reach with new tech partnerships
Fintech bytes: Pontera and Opto Investments expand RIA reach with new tech partnerships

Snowden Lane taps Pontera for held-away retirement account management, while Opto Investments enhances an Indiana-based independent RIA's private markets offering.

Credent Wealth Management debuts in Detroit with TFG Advisors deal
Credent Wealth Management debuts in Detroit with TFG Advisors deal

The $420 million RIA in Auburn Hills and Ann Arbor gives Credent its second and third Michigan locations while pushing it closer to $4 billion in AUM.

Investor anxiety hits six-year high amid market turmoil, Allianz finds
Investor anxiety hits six-year high amid market turmoil, Allianz finds

New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.