Goldman Sachs has appointed the former head of UBS's wealth management business in the Benelux region, de Selsaeten, to spearhead its private banking expansion in the area, according to a person familiar with the matter.
Strategic Hire for Regional Growth
De Selsaeten, who has spent over a decade at UBS, will join Goldman Sachs as a partner and will be responsible for building out the firm's wealth management offering for ultra-high-net-worth clients in Belgium, the Netherlands, and Luxembourg. The move underscores Goldman's ambition to grow its international private banking business, which has been a strategic priority under CEO David Solomon.
The hire comes as Goldman Sachs has been aggressively recruiting senior bankers from rivals to bolster its wealth division, which manages around $1 trillion in assets globally. The firm has set a target to increase its wealth management revenue to $10 billion by 2025, up from roughly $7 billion in 2020.
De Selsaeten's Track Record
During his tenure at UBS, de Selsaeten was credited with growing the bank's Benelux wealth business significantly, expanding its client base and product offerings. He was also involved in integrating UBS's acquisition of the Dutch wealth manager ABN AMRO's private banking arm in 2016, which added about 20 billion euros in assets under management.
According to a statement from Goldman Sachs, de Selsaeten's appointment reflects the firm's commitment to serving clients in the region with a comprehensive suite of investment and wealth planning solutions. The bank has been investing in digital tools and advisory services to attract wealthy clients in Europe, where it sees significant growth potential.
Impact on Competitive Landscape
The move is likely to intensify competition in the Benelux wealth management market, which has been consolidating as banks seek scale and efficiency. UBS, which has been trimming its wealth management operations in some regions, has not yet named a successor to de Selsaeten.
Industry analysts say that Goldman Sachs's ability to lure top talent from established players like UBS is a testament to its aggressive growth strategy in wealth management. The firm has also recently hired senior private bankers from Morgan Stanley and JPMorgan in Europe.
Goldman Sachs's private banking division has been expanding in Europe, with recent office openings in Frankfurt and Paris, and plans to grow its presence in the Middle East and Asia. The bank's focus on ultra-high-net-worth clients is part of a broader trend among global banks to target the growing number of wealthy individuals in Europe.
Future Outlook
De Selsaeten is expected to start his new role in the coming months, and will report to the head of international wealth management at Goldman Sachs. He will be based in Brussels, where Goldman Sachs has an existing office.
The appointment is part of a broader effort by Goldman Sachs to grow its wealth management business, which has been a bright spot in the bank's earnings. In the first quarter of 2023, wealth management revenue rose 10% year-over-year to $2.2 billion, driven by higher net interest income and asset management fees.
As Goldman Sachs continues to invest in this area, it is likely to face challenges from established players like UBS and Credit Suisse, which have strong footholds in the region. However, with de Selsaeten's experience and network, the bank is well-positioned to capture market share.
