Conference Presentation, Keynote
International Strategy - Goldman Sachs 2020 Investor Day
- The firm plans to hold the next feedback session in Europe where the food "will be better."
- Goldman Sachs expects complexity to continue as a constant for its global client base with "something else" arising tomorrow.
- The firm intends to grow by expanding with existing clients, acquiring new clients, and increasing market share across Europe and Asia.
- Significant breakout opportunities include geographic expansion, scaling alternatives, and growing the international private wealth business.
- Growth objectives are expected to be achieved while simultaneously driving further efficiencies.
- A consistent global strategy will involve expanding corporate coverage across the European footprint, including the EU27.
- The firm plans to acquire new clients in the $500 million to $2 billion size range across Europe, a segment that has already delivered 170 new mandates and driven revenue growth.
- Footprint expansion will continue through the launch of an onshore FIC business in South Africa.
- An equity business was launched in Saudi Arabia ahead of its inclusion in the MSCI and FTSE EM Benchmark.
- Investments in the continental Europe footprint aim to capitalize on opportunities arising from EU bank balance sheet pressure, competitor repositioning, negative rates, and the banking and capital markets union.
- Completion of the banking and capital markets union is viewed as creating significant future growth potential.
- EU27 headcount has increased by approximately 70% over the last three years and is being increased further.
- Japan is ranked as the third-largest contributor by country contribution over the last five years and is expected to provide significant future contribution.
- Research teams forecast a revenue pool in excess of $100 billion across its Chinese business portfolio by the mid-2020s.
- The firm plans to secure 100% ownership of its onshore joint venture in China, anticipating a fully integrated, head-start advantage over competitors.
- Significant investment across all Chinese market businesses is intended to continue.
- The firm expresses strong confidence in growing its alternatives investing business and meeting its $100 billion fundraising target.
- The number of private wealth advisors across Europe and Asia is planned to increase by 50% in the coming years.
- International private wealth standards have been raised, enabling the firm to compete more effectively and scale further.
- Client offerings will leverage the number one investment banking footprint, global markets insights, liquidity, and proprietary alternative investments.
- All strategic initiatives are expected to be accretive to the overall profitability of the firm.