By CultureBanx Team
- Justin Tuck joins Goldman Sachs as a VP in its PWM group
- Goldman’s PWM group manages $460B
Football and finance collide as former NFL player Justin Tuck joins Goldman Sachs (GS -0.07%). He’s joining the firm’s Private Wealth Management (PWM) division that’s looking to take a bigger chunk of the $22 trillion Ultra-High Net Worth market. Is hiring Tuck part of the company’s overall plan to help grow its PWM reach and attract new clients?
Why This Matters: Currently Goldman’s PWM group manages $460 billion which to the naked eye seems like a lot of money, it actually only represents 2% of the Ultra-High Net Worth market, according to a presentation by the firm’s president David Solomon. In its 2017 annual report Goldman said it expects to increase its private advisor workforce of 700 by almost a third between now and 2020.
Tuck will have to use his on the field savviness to find success is his new role as one of Goldman’s PWM vice president’s. As a Notre Dame alum and having recently received his MBA from U-Penn’s The Wharton School, this shouldn’t be to difficult. "At the NFL level, not being prepared means Tom Brady throws 400 yards against you… Not being prepared at a place like Goldman Sachs means that some of your trusted clients are losing money," Tuck said at the Wharton Global Forum.
Goldman wants to bring in $5 billion of new revenue over the next three years. Bloomberg reports the firm’s investment management division, which houses the asset-management group and private wealth managers is going to account for 20% of that growth.
Situational Awareness: Competition is stiff among wealth managers like Bank of America Merrill Lynch (BAC +4.31%) and Morgan Stanley (MS +1.71%), they respectively manage more than $3 trillion and $2 trillion in wealth assets. Another part of Goldman’s strategy is to have its top line dealmakers at the investment bank help the wealth management unit win new customers.
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