More

    Goldman Sachs Sets Sights on $300 Billion Private Credit Empire

    -

    Goldman Sachs is Wall Street’s top brand and employs some of the world’s best traders and investment bankers, but it’s facing an inflection point. Steady fee-generating areas like wealth and asset management have become valued far more than boom-or-bust activities such as trading or advising on mergers.

    The firm’s assets management arm, GSAM, launched its current strategy in 2022, positioning it as a significant growth driver for the bank. A senior executive said it aims to expand its private credit portfolio to $300 billion in five years from the current $130 billion. “It’s a huge opportunity,” Marc Nachmann, the unit’s global head of asset and wealth management, told Reuters in an interview.

    His plan to expand private credit reflects a growing appetite for the financing GSAM offers non-bank lenders and other investors. This financing includes a wide range of strategies that offer different levels of risk to investors, from low-risk, plain-vanilla holdings like money market funds and corporate bond ETFs to alternative assets such as private equity, real estate, and debt.

    Goldman also offers several specialized strategies that can be tailored to clients’ needs, including structured finance and treasury. It has invested in these markets for a few decades. It is a leader in providing customized financing solutions to companies with complex requirements, such as delayed draw term loans or pay-in-kind (“PIK”) options.

    The unit’s many strengths are its relationships with major global institutions and banks it has worked with for decades. That is a crucial reason why the business is so highly valued, even as it faces new competitive pressures and has seen its profit decline this year.

    Success in GSAM will be crucial to Goldman’s CEO, David Solomon. The company’s retail banking push and leadership style have pressured him and criticized some of his investments. GSAM will also give him a counterpoint to those who have said that the bank is not taking its customers’ needs seriously enough.

    This material is distributed by Goldman Sachs Australia Pty Ltd (ABN 41 006 099 681, AFSL 228948) solely for the information of wholesale clients as defined in Section 761G of the Corporations Act 2001 (Cth). No part of this document may be copied or reproduced without the written consent of GSAM. You should seek advice from your financial adviser before making any investment decision. Goldman Sachs does not provide tax advice. Tax treatment of investments depends on the individual circumstances of each investor and is subject to change. Any reference to securities or investments is for general information only and does not constitute investment advice or a recommendation.

    Diary Herald
    Diary Herald
    Diary Herald is a passionate writer and avid reader with a keen interest in exploring diverse topics. With years of experience in writing and publishing, Diary Herald has contributed to various publications and blogs, providing insightful and informative content. As a regular contributor to Diary Herald General News Blog, Diary Herald brings a unique perspective to the table and strives to offer readers an engaging and thought-provoking experience. When not writing, you can find Diary Herald exploring new destinations, trying out new recipes, or enjoying a good book.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Must read

    Using Lip Balm for Perfectly Hydrated Lips

    Who doesn’t love the feeling of soft, hydrated lips?...

    Selecting The Managed Internet Service Provider

    You can always choose to partner with a managed...

    Is ChatGPT Back Online After Temporary Service Disruption?

    The popular chatbot, widely used for business and personal...

    Coconut Water: A Friend to Your Kidneys, Not a Magic Bullet for Stones

    Coconut water has become a trendy health drink, praised...

    Tesla Market Value Shrinks by $80 Billion as Growth Concerns Mount

    Electric vehicle maker Tesla shares tumbled over 12% on...

    You might also likeRELATED
    Recommended to you

    Using Lip Balm for Perfectly Hydrated Lips

    Who doesn’t love the feeling of soft, hydrated lips? Whether you’re battling the harsh winter winds or the scorching summer sun, keeping your lips...

    Selecting The Managed Internet Service Provider

    You can always choose to partner with a managed IT service provider in Singapore if your organization wants to free up staff for core...

    Is ChatGPT Back Online After Temporary Service Disruption?

    The popular chatbot, widely used for business and personal purposes, is now back online following a brief outage that impacted thousands of users. The...