Goldman Sachs is reportedly planning to boost its European wealth management business by launching a new European lending unit for its wealthy clients as part of the bank’s strategy to restructure its business.
The new unit will provide loans to private wealth management clients and will serve as a private bank for wealthy customers globally, reported Financial Times.
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Operating as part of London-based Goldman Sachs International Bank, the European lending unit aims to build up a $5 billion loan book over the next three years.
In addition, the unit will serve nearly 1,700 Goldman’s wealthiest clients across Europe, the Middle East and Africa and offers loans for a range of purposes including liquidity facilities, portfolio diversification, tax payments or luxury purchases such as yachts.
The unit marks as another move by the lender to push beyond its volatile trading business into more traditional areas of banking, as reported by The Financial Times.
Goldman has already set up a lending business for rich clients in the US in the wake of the financial crisis.
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By GlobalDataFurthermore, the bank plans to provide mortgages for prime properties in London and elsewhere, subject to regulatory approval within the next one year.
In June 2014, the firm has hired Stephen Scherr as new chief strategy officer to increase the size of its commercial bank and wealth management division.
