Goldman Sachs is losing its wealth management team to rivals

According to one of the US daily, Teams of advisers overseeing USD10 BN in assets are leaving Goldman Sachs for rivals. A group headed by Denis Cleary and Gregory Devine with USD6 BN in assets under management will move to UBS Group AG. Brian Zakrocki and Joe Wladyka, who helped manage about USD 4 BN, are leaving Goldman for First Republic.

“We have built an amazing private-wealth management business that today is the crown jewel in our wealth management franchise,” Eric Lane, Goldman’s investment-management head, said at the firm’s investor day last month. “So how are we going to grow? First, we need to add more advisers.”

Lane said he thought the firm can add 250 advisers over the next three years, a 30 percent increase from its current figure.

Wealth-management units of nine of the biggest firms surpassed USD 100 BN in combined revenue for a third straight year in 2019. This is driving intense competition among banks for advisers who can bring billions of dollars in client assets.

Cleary and Devine’s team will maintain offices in Boston and Los Angeles, Zurich-based UBS said Tuesday in a statement. The group has clients in more than 25 U.S. states.

Goldman has about USD 560 BN in wealth-management assets under supervision, most of it catering to the ultra-high net worth crowd.