Goldman Sachs Eyes $70B Revenue Base as Asset, Wealth Growth Accelerates

Goldman Sachs Eyes $70B Revenue Base as Asset, Wealth Growth Accelerates

Goldman Sachs expects its revenue base to reach roughly $70 billion this year, up from the mid-$30 billion range when its strategic plan began in 2018–19, supported by greater diversification and operating leverage. Asset & Wealth Management is exceeding its targeted high-single-digit growth rate, overseeing about $4 trillion in assets and targeting 30% margins and high-teen returns. Acquisitions and partnerships are expanding its alternatives, ETF, retirement and real estate capabilities. Goldman expects alternatives fundraising above $125 billion this year and sees major financing opportunities from AI infrastructure investment, while near-term results may face higher expenses, softer FICC activity and a muted investments line.

David Solomon, chairman and chief executive officer of The Goldman Sachs Group NYSE: GS, said the firm is focused on expanding earnings, improving operating efficiency and building a more durable revenue base as it pursues growth across Global Banking & Markets and Asset & Wealth Management. Speaking at the company’s Global Financial Services Conference, Solomon said Goldman Sachs has grown its revenue base from the mid-$30 billion range when its current strategic plan was developed in 2018 and 2019 to an expected level in the $70 billion range this year. He said the company has also created operating leverage and broadened its business mix.

“We have a much broader, more diversified, more durable business,” Solomon said. While results may fluctuate with market conditions, he said Goldman expects its revenue base to remain structurally higher through market cycles than it was a decade or more ago.

Solomon identified Global Banking & Markets and Asset & Wealth Management as Goldman Sachs’ two major growth engines. He said the company sees opportunities to grow its Banking & Markets franchise, gain additional market share and use technology to operate more efficiently even at unchanged activity levels.

In Asset & Wealth Management, Solomon said Goldman has stated that it could grow at a high-single-digit rate but is currently exceeding that pace. The company is targeting 30% margins and high-teen returns in the unit, he said. The segment supervises approximately $4 trillion in assets, including $2 trillion of wealth assets, according to Solomon. He said the platform combines Goldman’s former merchant banking, public-side asset management, money-market liquidity, fund-of-funds and wealth-management businesses. Solomon said Goldman’s breadth across liquidity, fixed income, public equities and alternatives differentiates the platform. He also cited demand from ultra-high-net-worth clients, saying the firm expects secular growth in global wealth and in the number of ultra-wealthy individuals.

Goldman has completed four acquisitions and formed a partnership with T. Rowe Price in Asset & Wealth Management, Solomon said. He characterized the moves as meaningful but not individually significant, designed to fill platform gaps, accelerate growth and bring entrepreneurial talent into the firm. The T. Rowe Price partnership is intended to expand Goldman’s access to retirement distribution, where Solomon expects alternatives participation to increase over time. Goldman’s acquisition of Industry Ventures adds early-stage venture capabilities and a network that could help the firm see investment opportunities e...