Goldman Sachs Private Wealth Management
Goldman Sachs Private Wealth Management is part of the Wall Street bank's investment management division. Registered with the SEC as Goldman Sachs & Co., LLC, the firm has over $233 billion in assets under management (AUM).
The firm generally requires its clients to have at least $10 million invested with Goldman Sachs. Thus, it primarily provides investment advisory and wealth management services to high-net-worth individuals and families, as well as foundations, endowments and institutions.
Goldman Sachs Private Wealth Management Background
Goldman Sachs Private Wealth Management has been an SEC-registered investment advisor since 1981. It's principally owned by The Goldman Sachs Group, Inc., the publicly traded bank and financial holding company and full-service financial services organization that's been in existence since 1869.
Goldman Sachs Client Types and Minimum Account Sizes
Due to its notably high account minimums, the majority of clients at Goldman Sachs Private Wealth Management are high-net-worth individuals and families. However, the firm also has instiutional clinets that include pooled investment vehicles, pension and profit sharing plans, charitable organizations, government entities, insurance companies, sovereign funds, corporations and trusts.
Goldman Sachs typically requires clients to have at least $10 million in assets with the firm. To open an advisory account, clients need to either have a minimum of $1.1 million under the firm's management or a net worth exceeding $2.2 million, which can include jointly held assets with a spouse. As a result, the firm doesn't work with non-high-net-worth clients.
Services Offered by Goldman Sachs Private Wealth Management
Goldman Sachs Private Wealth Management offers the following services to its clients:
- Investment Advisory Services
- Discretionary and non-discretionary portfolio management
- Customized asset allocation and portfolio construction
- Access to Goldman Sachs and third-party investment managers
- Strategy selection across equities, fixed income, alternatives, structured investments, ETFs, mutual funds, and private equity
- Wealth Advisory Services
- Estate and legacy planning
- Charitable and philanthropic planning
- Family governance and generational planning
- Liquidity and cash flow management
- Retirement and Tax Strategy Support
- Advisory services for retirement accounts and plans
- Asset allocation and manager selection tailored to tax sensitivity
- Tax coordination with client professionals
- Trust and Estate Services
- Trust administration through Goldman Sachs affiliates
- Coordination with estate attorneys and fiduciaries
- Family Office Services (for select clients)
- Tax support and consolidated reporting
- Estate flow mapping and data aggregation
- Administrative bill payment and investment tracking
- Philanthropic advisory and foundation consulting
- Cybersecurity and physical security coordination
- Health and wellness advisory services
- Art strategy and collection management
Goldman Sachs Private Wealth Management Investment Philosophy
Goldman Sachs Private Wealth Management offers a wide range of asset classes and investments. Clients can choose from a variety of investment vehicles, including cash, fixed income, equities and alternative investments like private equity and hedge funds. Goldman Sachs will also create custom investment vehicles for clients.
The firm's Investment Strategy Group, a separate team of global investment professionals, provides guidance on asset allocation and portfolio diversification. Advisors’ investment decisions for individual accounts are typically based on a client's investment objectives, risk tolerance, time horizon and financial situation.
Fees Under Goldman Sachs Private Wealth Management
Goldman Sachs charges clients for advisory services provided by private wealth advisors according to one of two fee models: a single advisory fee structure or a strategy-based advisory fee model. The former is recommended to clients who invest across a number of asset classes rather than a small number of managed strategies. It will depend on a variety of factors whether a client will pay more or less with one model or the other.
The following fee schedules apply to advisory accounts that are managed by private wealth advisors:
| Structured Investment Strategies | |
| Asset Level | Total Fee |
| $0 - $10 million | 1.90% |
| $10 million - $25 million | 1.70% |
| $25 million - $50 million | 1.60% |
| $50 million - $100 million | 1.50% |
| $100 million - $250 million | 1.40% |
| $250 million - $500 million | 1.30% |
| More than $500 million | 1.20% |
| Goldman Sachs Option Advisory Services (GOAS) | |
| Asset Level | Total Fee |
| $0 - $10 million | 1.25% |
| $10 million - $25 million | 1.15% |
| $25 million - $50 million | 1.10% |
| $50 million - $100 million | 1.05% |
| $100 million - $250 million | 1.00% |
| $250 million - $500 million | 0.95% |
| More than $500 million | 0.90% |
| Alternative Investment Fund Strategies | |
| Asset Level | Total Fee |
| $0 - $25 million | 0.750% |
| $25 million - $50 million | 0.500% |
| $50 million - $75 million | 0.450% |
| $75 million - $100 million | 0.400% |
| $100 million - $200 million | 0.350% |
| More than $200 million | 0.300% |
| Thematic Marketplace Strategies | |
| Asset Level | Total Fee |
| $0 - $10 million | 1.85% |
| $10 million - $25 million | 1.30% |
| $25 million - $50 million | 1.20% |
| $50 million - $100 million | 1.10% |
| $100 million - $250 million | 1.05% |
| $250 million - $500 million | 1.00% |
| More than $500 million | 0.95% |
Clients may also pay commissions, commission equivalents, mark-ups, mark-downs and spreads. Fees for custody, family office services and consolidated reporting may also apply. Clients will also be responsibly paying any expenses or fees related to mutual funds and private investment funds.
What to Watch Out For
Goldman Sachs has been subject to numerous disciplinary events over the last decade. The firm has 521 disclosures reported on its ADV form.
Prospective and current clients should be aware that Goldman Sachs and its advisors are compensated for the sale of securities and other investments and services. Furthermore, they receive higher fees and compensation for investing clients' assets in affiliated products, which means they may be more likely to recommend those products as opposed to outside products. This is a conflict of interest that that you'll want to keep in mind. However, as a fiduciary, the firm must always act in your best interests.
Opening an Account With Goldman Sachs Private Wealth Management
To open an account with Goldman Sachs Private Wealth Management, you'll need to sign an investment advisory agreement. Clients must also select an investment objective and portfolio objectives that align with their larger investment goals and level of risk tolerance.
Additionally, clients must meet Goldman Sachs' specified minimums (listed above) to open an account.
Goldman Sachs Private Wealth Management is headquartered in New York City. It has additional offices in large cities across the U.S. The company also provides private wealth management services in Europe, the Middle East, Africa, Asia and Latin America. You can get more information on its website or by calling (212) 902-1000.
All information is accurate as of the writing of this article.
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