You can turn portfolio value into practical buying power without selling core holdings. Goldman Sachs is scaling its private bank lending to serve clients with $10 million-plus accounts, aiming to double that business over the next five years.

The bank reported $33 billion in outstanding loans and strong Asset & Wealth Management results in Q1 2024. That growth signals more capacity for bespoke credit solutions tailored to your goals.

With deposits rising to $441 billion since 2019 and lending penetration below industry averages, there is clear room to expand client-focused programs. You’ll learn how secure, flexible loan structures can support acquisitions, tax planning, or short-term liquidity needs.

Key Takeaways

  • Goldman Sachs is expanding lending to wealthy clients, aiming to double loans to accounts over $10M.
  • You can use asset-backed credit to access cash without forced sales in volatile markets.
  • Stronger balance sheets and deposit growth may improve pricing and execution speed.
  • Lending penetration is below peers, creating room for more client-centric options.
  • Expect specialized underwriting and multi-asset collateral choices for complex needs.

Goldman Sachs steps up private bank lending as wealth results surge

A sharp uptick in private-banking profits is fueling a deliberate push to expand credit for ultra-wealthy clients. You’ll see how stronger fees and deposits create scope to scale tailored lending across large accounts.

Why you’re seeing a lending push to ultra-wealthy clients

Asset & Wealth Management posted a 43% year-over-year rise in pre-tax earnings, and private banking net revenues jumped 93%. That performance gives goldman sachs room to be more competitive on pricing and product variety.

The five-year plan to double lending to UHNW accounts over $10 million

The bank has a stated goal to double loans to private wealth accounts above $10 million over the next five years. You should expect more bespoke structures and closer coordination between advisors and the lending team.

Key numbers and what they mean for you

  • $33 billion in outstanding loans signals a growing business ready to support large transactions.
  • Total deposits of $441 billion strengthen funding and could improve loan terms.
  • Lending penetration sits at 3% of wealth client assets versus ~9% industry, indicating room to expand client access.

“We are focused on serving private wealth borrowing needs competitively.”

— David Solomon, CEO

For you, this means more dialogue with your advisor, better-aligned collateral strategies, and wider loan choices that match your assets and timing this year and beyond.

high-net-worth-loans-goldman-sachs: how new platforms expand your access to liquidity

You can convert investment holdings into usable cash through new digital and underwriting platforms that work with your advisors and custodians.

GS Select is a securities-based lending product from Goldman Sachs Bank USA that lets advisors at third-party broker-dealers, RIAs, and custodians offer revolving lines of credit up to $25 million. Collateral can include stocks, bonds, mutual funds, and ETFs held in non‑retirement accounts.

GS Select lending

Digital credit for publicly traded collateral

The line allows you to borrow, repay, and re-borrow, with interest priced off 1‑month Libor plus a spread reset monthly. There is no maturity date and no prepayment penalty, which helps you manage cash needs flexibly.

Underwriting for alternative assets

Through Goldman Sachs Advisor Solutions, eligible clients can borrow against certain private investments. A dedicated underwriting team evaluates private equity, private credit, and other alternatives to set lendable values and liquidity profiles.

Connected advisor ecosystem

GS Select integrates with firms on Fidelity Clearing & Custody Solutions and other partners so your advisor can originate loans while your accounts stay at participating custodians. This blends digital processing with relationship support.

“You can access tailored credit across public and private asset types with coordinated advisor support.”

  • Use case: fund real estate, tax payments, or capital calls without selling assets.
  • Operational benefit: straight-through processing and collateral monitoring reduce admin work.

Market context: from 3% lending penetration to competitive wealth management growth

Deposit growth and platform upgrades set the stage for more competitive loan options tied to your portfolio. With lending at roughly 3% of wealth client assets versus a near-9% industry norm, the bank has room to expand credit to you and other clients.

How deposits, strategy shifts, and platform innovation affect pricing

Rising deposits—now about $441 billion—boost the bank’s capacity to fund loans. That can push pricing and advance rates in your favor over the next years.

Stronger results in asset & wealth management and private banking also mean the bank can invest in platforms like GS Select and underwriting for private asset credit. These tools widen the loan choices tied to your assets.

  • You can use securities-based lines to avoid forced sales and keep your portfolio allocation intact.
  • Asset selection and liquidity profiles will shape eligible advance rates, haircuts, and margin triggers.
  • Coordinate with advisors and custodian relationships to access the best platform for your needs.

“Expanded funding and tech may translate into more flexible, customized lending for individuals.”

Conclusion

You can use the firm’s multi-year plan to scale private bank credit into practical financing for your goals.

Goldman Sachs pairs strong deposits and asset & wealth momentum with platforms like GS Select and underwriting for alternatives. That means larger, portfolio-backed lines and tailored loans up to $25 million for eligible clients.

Work with your advisors to mix products, collateral, and accounts. Treat fees, spreads, and covenants as negotiable design elements. Stress-test collateral and timing across years so loans support acquisitions, taxes, or liquidity without derailing your plan.

By aligning asset-first evaluations with the bank’s advisor ecosystem, you position your finances to act quickly and securely as opportunities arise.

FAQ

What types of loans can you get using securities as collateral?

You can access securities-based lending that lets you borrow against stocks, bonds, mutual funds, and ETFs. These loans typically offer lower rates than unsecured credit because your portfolio acts as collateral, and you can use proceeds for liquidity, investments, or tax payments while keeping market exposure.

How much can you borrow through GS Select and similar platforms?

Some platforms allow borrowing up to million against eligible securities, though available limits depend on your account size, asset mix, and underwriting. Your advisor and the lending desk evaluate margin requirements, concentration risk, and loan-to-value ratios to set a personalized limit.

How do alternative assets factor into lending for registered investment advisors (RIAs)?

Lenders increasingly underwrite private assets — like private equity, real estate, and fund interests — as collateral. Through advisor-focused channels, firms can structure loans that recognize the value of alternative holdings, though valuation processes, liquidity provisions, and haircuts differ from liquid securities.

Will using your portfolio as collateral affect your investment strategy?

Using securities as collateral can preserve your investment positions while providing cash, but it introduces margin risk. If markets fall, you may face margin calls or be required to post additional collateral. Work with your advisor to size loans so they align with your risk tolerance and liquidity needs.

How do fees and pricing typically work for private bank lending?

Pricing usually includes an interest spread over a base rate, possible origination or commitment fees, and custody or servicing charges. Rate tiers often reflect your relationship, asset size, and credit profile. Ask for a clear fee schedule and scenarios that show total cost over time.

How might a push by large banks into ultra-high-net-worth lending affect your options?

Greater competition can expand product choice, improve pricing, and spur innovation in servicing and digital tools. That may mean higher loan capacity, new collateral types, and enhanced advisor support, but you should compare offers and consider trade-offs like exclusivity or account minimums.

What should you know about outstanding loan volumes and wealth management earnings?

Rising outstanding loans and stronger wealth management earnings signal increased demand and capacity for secured lending. For you, that often translates to broader product availability and potentially more favorable terms. Still, assess how balance-sheet growth could shift credit policies or risk tolerances.

How do third-party ecosystems like custodians and clearing firms impact your lending experience?

Custodians and clearing partners enable integrated servicing, streamlined settlement, and broader advisor distribution. They can speed underwriting, support alternative collateral, and offer digital account access, which improves transparency and reduces friction in executing and monitoring loans.

What are the key risks you should monitor when taking a collateralized loan?

Monitor market volatility, concentration risk in collateral, margin call exposure, counterparty terms, and liquidity needs. Understand default triggers, rehypothecation clauses, and how collateral valuations are calculated. A clear contingency plan helps you manage downside scenarios.

How can you work with your advisor to choose the best lending solution?

Review your objectives, time horizon, tax implications, and cash-flow needs with your advisor. Request modeled scenarios that show costs, collateral behavior under stress, and impacts on your portfolio. Compare offerings from multiple lenders to ensure terms match your goals and relationships.