Goldman Sachs continues to achieve traction in its RIA custody enterprise, coming off its finest month ever by way of asset gathering, in keeping with agency executives. And whereas the agency wouldn’t present particular development numbers, it did say it’s seeing a rise within the variety of inquiries from advisors in a captive setting. In November, as an example, a Morgan Stanley group with about $650 million in consumer belongings departed the wirehouse to launch their very own RIA with Goldman Sachs Advisor Options as their main custodian.
And for the primary time, the custodian is offering some particulars on its expertise stack. Among the agency’s large tech companions embrace Black Diamond, Orion Advisor Options, Advyzon and Amplify, mentioned Richard Lofgren, head of advisor engagement of GSAS. It additionally has API integrations with 42 expertise distributors.
The rationale behind the rising variety of tech integrations is to help advisor selection, Lofgren mentioned. The agency can be engaged on elevated capabilities round account opening.
“Me because the custodian pushing that knowledge, pushing the positions, the exercise, all that knowledge backwards and forwards, I am simply empowering the advisor with elevated selection,” he mentioned. “And so they’re not dependent upon simply the custodial platform to have the ability to do their day-to-day duties. That is a robust place as a result of once more, it is about their selection, their expertise, and fewer about, ‘Hey, if you need an expertise with Goldman, it is solely in Goldman’s ecosystem.’”
Lofgren has mentioned the agency is just not constructing a soup-to-nuts tech platform in-house. A lot of the engineering work has been on integrating with outdoors expertise suppliers, together with CRM platforms, commerce order and portfolio administration software program and monetary planning techniques.
Goldman Sachs’ Richard Lofgren
In keeping with the T3 2024 Inside Data/Advisor Software program Survey, which polled practically 3,000 corporations, GSAS noticed the most important increase in advisor satisfaction, with its common satisfaction growing by 22.7% from 2022 to 2023. The custodian’s belongings grew 40% year-over-year, the survey discovered.
Goldman first acquired into the custody enterprise in 2020, when it acquired Folio Monetary’s clearing and custody enterprise, which had $11 billion on the platform from 450 advisors. It has been iterating and evolving its custody providing ever since.
The T3 survey exhibits that GSAS now has a 0.72% market share within the custodial area. Of RIAs who custody with Schwab, 0.89% are contemplating switching or including Goldman; that proportion jumps to 1.65% for customers of Constancy.
Lofgren mentioned the agency is seeing success with advisors who need to faucet into Goldman’s options capabilities and buying and selling chops. For instance, many RIAs are all in favour of chatting with the buying and selling desk about making a cap and collar round concentrated fairness positions, or different methods to create liquidity round massive inventory positions.
And whereas the agency is seeing extra curiosity from worker advisors, there’s additionally curiosity from present impartial advisors trying to transfer a portion of their enterprise to Goldman.
“They’re coming to us and saying, ‘Hey, my custodian is perhaps wonderful for this proportion or portion of my enterprise, however I’ve acquired this increasing demographic that claims, I want one thing that maybe my present custodian cannot resolve or cannot tackle,’” he mentioned.