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Goldman Sachs Reports Strong Growth in Asset and Wealth Management Division
Goldman Sachs has announced significant growth in its asset and wealth management (AWM) division, surpassing its initial targets. CEO David Solomon reported that the division has achieved a compound annual growth rate of 12% since 2021, exceeding the firm's previous high-single-digit projections. As of mid-2026, assets under supervision have surpassed $4 trillion for the first time, reflecting a robust performance in management and other fees, which reached $3.355 billion in the second quarter of 2026, a 20% increase from the same period last year.
The AWM segment generated $4.60 billion in net revenues for the second quarter of 2026, marking a 20% year-over-year growth. This success has led Solomon to revise the division's medium-term targets, aiming for pre-tax margins of approximately 30%, an increase from the earlier goal of around 25%. Additionally, the return on equity targets have been adjusted to the high teens, and a new benchmark of 5% annual long-term fee-based net inflows has been established specifically for the wealth management segment.
Goldman Sachs is backing its growth strategy with acquisitions, including Innovator, an ETF provider, and Industry Ventures, which specializes in venture capital secondaries. The firm is also aiming for $75 billion to $100 billion in annual fundraising for alternative investments. To further emphasize the importance of the AWM division, Goldman appointed seven new executives to its management committee in 2026.
Source: KLEA News