WALL STREET titan
In an interview with Reuters,
“It’s not going to zero because we will continue to invest in and alongside funds, as opposed to individual deals on the balance sheet,” he added.
Alternative investments are typically money stored away in private equity funds, private credit vehicles and real estate.
The bank is looking to raise money from third party investors to create funds to invest in alternative assets instead of relying on its own balance sheet. This means while the alternative investments themselves will sit elsewhere, Goldman’s real exposure to the assets will not shrink.
The company is aiming to raise around
In last week’s earnings, Goldman said gross third party alternatives fundraising topped
The move has been given added impetus by Goldman posting one of its worst set of results in recent memory.
It missed targets by a large margin, plagued by the global deal making environment being rocked by central banks hiking interest rates, making it nore expensive to finance deals.
The lender is also sacking 3,000 bankers as it looks to trim costs.
(c) 2023 City A.M., source