Wealth advisers or relationship managers establish relationships with the wealth holders. It’s common practice for banks to poach teams for whole regions or specific segments such as entrepreneurs. Once hired, relationship managers need six to 12 months to increase their assets under management. However, clients don’t always follow their relationship managers as banks offer discounts to retain them.
Targeting Acquisitions
Goldman currently has just 1% of the market for ultra-high-net-worth individuals in Europe -- a $7 trillion business, Bollinger said. To grow from here he plans to hire teams from other banks. Bollinger said he would also screen acquisition opportunities in Europe, but any target would have to be exclusively holding wealth of ultra-high-net-worth clients.
Goldman earlier this year agreed to buy wealth manager United Capital for $750 million, one of the investment bank’s biggest purchases in recent years. The company manages $250 billion.
This article was provided by Bloomberg News.