You know when you look at the strategy Set forward by Goldman Sachs help us Understand Goldman stack sock has been Lagging on a Price to Book basis from Some of its Rivals what are investors Not seeing what is the math here on why Goldman may be worth more than the stock Is currently showing well first of all It's great to have you in our building Thanks for taking the time today was an Important day for us as you said it was Our second investor day in our 23 or so Year history as a public company and 154-year history as a firm we've Committed to talking to our investors on A more regular basis and so we did our First investor day in January of 2020 Right before the pandemic and then we Had three years of clearly very Complicated volatile markets and so We're now updating our investors on what We've done over the past three years and Spending a lot of time talking about our Strategic realignment which is an Important evolution in our journey to Further align our businesses to create More durable returns and long-term value Over time is there a Goldman 2.0 here When you take a look at the strategy or Is this kind of an incremental path to Get to where you want to go well I think If there's a 2.0 it's really talking About having two Market leading Businesses global banking and markets
And Asana wealth management which are Businesses we've been in for a very long Period of time now run together in an Integrated fashion global banking and Markets a 30 plus billion dollar Revenue Business generated 16.4 percent returns Last year definitively outperforming our Competition we've done a great job in Those businesses and now when you see Them together you see the power of those Franchises and you see some of the Diversity effects of those franchises Where in some cases market headwinds for Certain other franchises that are Tailwinds for others and vice versa and You can see those businesses really Performing across Cycles in a mid-teens Returns kind of manner when you think About sudden wealth I'm really curious About how much you're willing to in Form is this something you think you Would do a large transformative deal Around in order to Order well let's just talk about the Organic opportunity in asset and wealth Management and today again in global Banking and markets Dandy's walk through The story it's a very very compelling Story in asthma wealth management my Partner Mark knockman walked through That story and to your question about a 2.0 version we're now running asset and Wealth management as an integrated Platform where we have scale in active
Asset Management we're a top five player In active asset management and we're a Top five player in global Alternatives I'm not aware of another platform that Has our kind of scale in both that's Pretty unique and then we have a premier Wealth management franchise with a Trillion dollars of assets on that Platform we have have to also talk about Kind of this years-long journey in Consumer as well you've said you're Considering strategic Alternatives how Much detail can you give us around what Those strategic alternatives are could It mean the sale of all or parts of the Business before I address your consumer Question and I will address it just in Asset of wealth management this is a Very important again back to your 2.0 Question this is a very important growth Opportunity for the firm with the scale I talked about we now have significant Fundraising objectives in front of us we Have a significant management fee Target In front of us we now have 8.8 billion Dollars of management fees in that Business against a 10 billion dollar 2024 Target we're clearly well on our Way to hitting that Target and that Target is not the limit of our Ambitions Two billion dollars of that 10 billion Dollar Target would be from Alternatives We're now at 1.8 billion dollars on that Two billion dollar Target so in both
Cases total and Alternatives we are well On our way to hitting and exceeding Those targets which will make the firm More durable more resilient and more Valuable and so that that 2.0 version of Asset and wealth management is going to Be a significant growth Vector for the Firm going forward where you have two Market leading businesses both mid teens Returning businesses both durable both Resilient through the cycle both where We are Market leaders which really Underpin the financial targets we put Out today with our investors so that's The future but as you get there there's Still this idea that it'll take two Years for the consumer business or the Platform Solutions business to break Even do you think investors will be Patient with you along that Journey well You asked about consumer okay so we Talked today to our investors very much About our path to profitability we Basically said we would do three things In The Firm one we would grow wallet Share and grow our financing businesses Further than we already have grown them And we've grown them considerably two we Will grow our management fees and three We will create profitability and plot in Platform Solutions we will deliver Profitability in that segment that Segment has has transaction banking Which is a profitable business and it
Has consumer platforms where obviously We have had losses in those consumer Platforms we have a plan to drive to Profitability we told our investors Today we would drive to profitability in 2025. we likewise said that we will look At and explore and are exploring Strategic alternatives to make sure that We understand all opportunities in front Of us to unlock value and platform Solutions across this consumer those Consumer businesses another big thing That you said today is that you can cut Another billion dollars in costs where Do those costs come from and how much of Those costs come from additional head Count reductions after already making 3200. just to be clear we talked about a Billion dollars of operating Efficiencies and then we talked about Reinvesting some or all of those Efficiencies back into the core Franchises that's an important Differentiation okay so we obviously did Some work on our head count coming into This year some of those benefits will Will flow through 2023 some of those Benefits will flow through 2024. we're Working hard on some of our other Expense-based items non-compensation Items in particular whether that relates To other marketing expenses or Operational expenses in The Firm that we Can defer and be more judicious about so
We're looking across all of those items That totals a billion dollars of Efficiencies over time but importantly We will look to reinvest those Efficiencies back into our core Franchises depending upon the Performance of the firm and upon the Broader Market environment now I want to Pivot a little bit here because I want To talk about the culture of the firm You know it's interesting for all of the Talk of the turnover you've given an Interesting statistic that turnover is At a five-year low but at the same time As UBS puts it among investors that There's a concern about the loss of Confidence among Partners what are you Doing they bring Partners back on your Side well we said earlier today to our Investors that we for the first time in Four years we're able to bring all of Our partners together for an off-site we Had many versions of that during the Pandemic but we couldn't get everybody Together given the obvious travel Restrictions during the pandemic so for The first time a couple weeks ago we Were able to get everybody together and I would say it was a extremely Productive and valuable meeting where People walked our partners walked out of That meeting Very optimistic about the future of the Firm very optimistic about the
Investments we're making in the forward Of the opportunity of the firm Particularly in those two Market leading Businesses and then like many others Have questions about how long will it Take to drive platform solutions to Profitability so certainly those Questions come up some of those Questions spill out into the Press but I Think if you looked at our partnership And you walked around and interviewed Our partners they are firmly behind the Strategy firmly behind the opportunity And very excited about what's in front Of us at Goldman Sachs I have to go back To a prior question because I feel like I still need an answer do you think that When it comes to the asset management Business that you can do something Transformative at this phase it's Especially given when you look around The markets that they've sold off so Much well if you look at our look at our Strategy and you listen to what we said Today to our investors we have plenty to Do organically we have significant Opportunities in front of us to drive Wallet share and grow financing in our Banking and markets businesses that's an Organic strategy and asset and wealth Management we have significant Opportunities to drive management fees We have significant opportunities to Continue to invest in our platform
Operationally and to grow our wealth Management business all of those Opportunities are organic we can always Look for inorganic opportunities we have As you know we've made Acquisitions we Bought a business last year in Europe Called nnip which has added Substantially to our European footprint And active Asset Management has given us Very interesting ESG capabilities across Our asset management platform there are Always things we can look to do but our Appetite right now is most interestingly Driven by the organic opportunity and I Can't let you go without asking about The broader macro environment here you Know just rate expectations have changed Drastically in the last couple of weeks How has it changed the calculus among Your clients for risk appetite how does It change the calculus for you for risk Appetite well I would say if you think About what was going on at the end of Last year there were significant Concerns in three primary areas areas One was the European energy crisis two Was China and zero covid and three with The performance of the U.S consumer in All three areas things have broken to The high side we didn't see the energy Crisis that everybody predicted maybe Somewhat driven by warmer weather but it Didn't occur and so the European Situation improved nobody predicted that
The zero covered policy would pivot very Quickly to opening up China largely Completely that has changed materially That's a much more significant upside Surprise and the US consumers Outperformed so to me all three of those Elements broke to the high side what I Think today everybody is wrestling with Is how permanent and how secular A Change Is this inflationary environment Going to be most of our clients are very Concerned about the inflation Particularly corporate clients they see It being more persistent in their Businesses the marketplace is a little Bit more complacent I would say on Inflation in terms of how the market Trades inflation that to me is a Disconnect that has to get adjudicated Over the course of the year and we're Obviously keeping a close eye on that
