Goldman Sachs Group Inc. plans to ramp up its wealth management business by boosting its advisor force in the next couple of years.
Goldman Sachs spokeswoman Melissa Daly confirmed the plans, but declined to disclose how many advisors would be added. The current 600-member advisor force will expand to 800, according to Dow Jones, which first reported the news.
The focus of the expansion will include the United States, as well as other countries poised for growth in the coming years including Brazil, China and the Middle East. The new strategy comes as banks are under increased regulatory pressure to meet higher capital requirements.
The potential recruitment efforts for the staff expansion plans might not make a difference on Wall Street, according to Danny Sarch, president of Leitner Sarch Consultants, an executive search firm for the financial services industry. Unlike other major wealth management firms’ hiring practices, Goldman does not typically recruit talent from its competitors, Sarch said.
Instead, the firm frequently turns to college campuses or other industries with sales experience, such analysts and accountants, and groom those professionals for their firm. If Goldman continues to follow that model, the wealth management expansion won’t have much impact on traditional Wall Street recruiting. “If they’re just going to grow in the way that they always have before, then it’s not news,” Sarch said.