“If somebody’s about to make several million from a dotcom IPO, one of the first conversations they almost always want to have is about setting up or managing their charitable foundation,” French said.
Philanthropy is a fast-growing segment for New York-based Goldman Sachs, said Wayne Hawkes, executive director in the bank’s charity investment group. More than 10 percent of the wealth division’s assets belong to charities or foundations, many of them endowed by wealthy individuals. The bank’s approach to charities is broadly similar to how it caters to its millionaires and billionaires, advising on asset allocation and investment opportunities.
As long-term investors, charities tend to embrace risk more than ultra-high net worth clients, Hawkes said. Yet their willingness to ride out volatility needs to be tempered with the realization that they can’t withstand a severe market downturn.
This article was provided by Bloomberg News.