Goldman Sachs: Australia’s ultra-rich are Asia’s ‘biggest opportunity’
Goldman Sachs is doubling the number of advisers in its local private banking arm after identifying the country’s 400 wealthiest families as one of the “biggest opportunities” in Asia.
The investment bank’s move comes amid significant changes in Australia’s wealth management sector after Credit Suisse, which had one of the largest private banking divisions and managed money for some of the country’s richest people, was acquired by UBS. The larger Swiss bank will re-enter the wealth management sector locally after exiting the market in 2015.
Simon Rothery, chief executive at Goldman Sachs Australia, said the country is the number one migration destination for the rich. Louie Douvis
Simon Rothery, Goldman Sachs’ local chief executive, said Australia’s ultra-rich represented the “biggest opportunity in private wealth in Asia” as they sought returns from a variety of assets like cash, equities and alternative investments like private credit.
“I think this [high net worth] opportunity has been overlooked in Australia. There has been a huge amount of wealth created plus you’ve got the dynamic of Australia being the number one migration destination for ultra-high net-worth people,” Mr Rothery said.
Goldman Sachs takes on clients in Australia who have more than $100 million in investible assets, in line with the global average. In Australia, that is often families with fortunes of about $500 million, many of which still have operating businesses.
Inside the bank, the approach to looking after these clients is known as One GS – and the New York-headquartered firm says this puts those family offices on par with super funds. JPMorgan also targets ultra-high net worth people with minimum assets under management of $25 million, but
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