The global investment bank Goldman Sachs Group is expanding its wealth management operations in a city-state that is free of poverty and boasts one of the lowest tax rates in the world. As a paradise for the wealthy, many of the world’s affluent individuals are eager to own a home in the principality of Monaco, where millionaires make up nearly one third of its 39,000 residents.
Monaco is one of the smallest self-governing countries in the world, with an area smaller than Central Park in New York, and typically does not impose taxes on income or capital gains. It is famous for hosting one of the largest yacht exhibitions in the world, in addition to a steep Formula 1 racing circuit.
Last month, the Wall Street giant received approval to establish a branch of its private wealth management unit there, after about six years of closing a previous office, according to Bloomberg, as reported by Al Arabiya.net. Goldman Sachs stated that the company has included three former executives from the British bank Barclays to lead the team, namely Arnaud Cousin, Thibaut Lambert, and wealth advisor Serge Oliv.
The company's private wealth unit has added dozens of advisors throughout Europe, the Middle East, and Africa in recent years as part of a strategy outlined by CEO David Solomon to make one of the world’s largest banks less dependent on the trading sector.
Chris French, co-head of private wealth management for Europe, the Middle East, and Africa, said in a statement: "Establishing our presence in Monaco is critical to achieving our regional strategy and overall growth plan. Monaco represents an important jurisdiction for our private wealth business in Europe."
Among the city’s residents are Jim Ratcliffe, founder of the British chemicals company INEOS, and Russian businessman Dmitry Rybolovlev, who also owns AS Monaco Football Club participating in Ligue 1, with estimated net worths of $13.2 billion and $10.8 billion, respectively, according to Bloomberg's Billionaires Index.
Goldman Sachs' move is part of a growing trend among global banks, including Citigroup and UBS Group, to establish a presence in Monaco. Revenue in Goldman Sachs' wealth and consumer management unit rose by 25% to $7.5 billion in 2021 compared to the previous year. The firm managed approximately $751 billion in assets at the end of the year.
