The Goldman Sachs Group announced several actions to better serve corporate and investor clients and grow its business in private credit, private equity and other asset classes. The firm is creating the Capital Solutions Group, which will combine and grow its comprehensive suite of financing, origination, structuring and risk management solution activities in Global Banking & Markets. The firm will also expand its alternatives investment team in Asset & Wealth Management to ensure the best understanding and application of both investment sourcing and investing capability, as the interconnection between the firm’s businesses grows.

“Our strategy and core franchise strengths position Goldman Sachs to operate at the fulcrum of one of the most important structural trends taking place in finance: the emergence and growth of private credit and other asset classes that can be privately deployed,” said David Solomon, Chairman and CEO of Goldman Sachs.

“There is significant demand from our investing clients for private credit and private equity – from investment grade and leveraged lending to hybrid capital and asset-backed finance as well as equity,” Solomon said. “Our One Goldman Sachs approach allows us to channel the growing synergies between our clients in Global Banking & Markets and those in Asset & Wealth Management.”

The Capital Solutions Group will combine current capabilities within the firm’s Financing Group, Financial Sponsors coverage from Investment Banking and coverage of Alternative Management firms from FICC and Equities. The Financing Group has led many of the most significant equity offerings, debt financings and risk management transactions globally. This expanded group will better coordinate, innovate and accelerate the delivery of services to these clients.

The firm will create an alternatives origination group within Capital Solutions to focus on sourcing across investment grade credit, leveraged loans, real estate, infrastructure, other asset-backed finance and private equity. This will help ensure that we are providing seamless, connected and comprehensive coverage to our private equity and private credit clients, while offering the best possible suite of financing options to our issuing clients.

This firmwide effort will leverage Goldman Sachs’ unique strength: the combination of a market-leading advisory franchise working with more than 10,000 companies across the world, a deep and broad public and private-side origination business that is equally strong across fixed income and equity, and an investing platform that attracts and invests capital across the full range of liquid and alternative asset classes.

Pete Lyon, currently global head of the Financial Institutions Group and the Financial and Strategic Investors Group, and Mahesh Saireddy, currently global head of Mortgages and Structured Products, will lead the Capital Solutions Group. Lyon and Saireddy will join the firm’s Management Committee.

Additionally, Vivek Bantwal, global head of the Financing Group, will move to Asset & Wealth Management and partner with James Reynolds, global head of Direct Lending, to co-head Global Private Credit. Together, they will lead the firm’s effort to grow our scaled private credit business, which already has approximately $145 billion in total alternative assets. Their aim will be to create superior returns for our investing clients, benefitting from our exceptional sourcing capabilities in Global Banking & Markets.

Goldman Sachs has taken several steps in recent years to bring its best-in-class investment banking franchise together with leading markets businesses. The firm has also combined multiple investing businesses in asset management to produce one globally scaled investing platform.

Today’s announcement is a continuation of the One Goldman Sachs framework to deliver the comprehensive strengths of firm to its clients. The effort allows the firm to provide clients with access to differentiated sourcing and investing capabilities across opportunities in private credit and private equity.

Source: Goldman Sachs