(Bloomberg) -- Goldman Sachs Group Inc. picked John Mallory to lead its private wealth management business in the Americas as the firm known for its prowess in Wall Street dealmaking tries to catch up with rivals catering to the uber wealthy.
Mallory, a partner based in California, will oversee efforts to win clients in the U.S. and Latin America while the private bank carries out a plan to expand its global fleet of advisers by almost a third through 2020. A representative for the bank confirmed the new role for Mallory.
A global proliferation of extreme wealth over the past decade is providing banks with opportunities to land new clients. That’s helped Goldman Sachs’s private-banking arm -- long dwarfed by units at firms including Morgan Stanley, Bank of America Corp. and JPMorgan Chase & Co. -- win lucrative business in recent years.
“The world seems to be growing rich people faster than we can grow advisers to cover them,” Chief Executive Officer Lloyd Blankfein told investors in February. The firm has about 700 private-wealth advisers, each generating an average of $4.5 million of revenue, he said.
The private wealth management unit works with individuals, families, foundations and endowments who typically entrust more than $40 million with the firm. It falls under the investment-management division, which also includes Goldman Sachs Asset Management.
Mallory previously led the investment-management division’s western region and will remain in Los Angeles. He joined Goldman in 1998, according to brokerage-industry records. He’s long been known for his work tending the firm’s relationship with the Steinbrenner family and for helping to renegotiate Alex Rodriguez’s contract with the Yankees in 2007.
“John’s new role reflects our ambitious plans for the future,” Tucker York, the global head of the private wealth management group, said in a memo to staff.
Goldman Sachs had $458 billion of assets from high-net-worth individuals at the end of 2017. Rivals Morgan Stanley and Bank of America, which target a wider swath of clients, both have more than $2 trillion.
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