Goldman unveils Blackstone-like investments group

More details of alternative investments platform to be provided at January investor day

Goldman Sachs executives hope that boosting its investing division will help lift its share price, now languishing near post-crisis lows. Photograph: Johannes Eisele/AFP via Getty Images

Goldman Sachs executives hope that boosting its investing division will help lift its share price, now languishing near post-crisis lows. Photograph: Johannes Eisele/AFP via Getty Images

 

Goldman Sachs has unveiled a Blackstone-like alternative investments group, previewing a key element of the strategic plan to be presented at the company’s much-anticipated investor day next month.

In a memo to staff this week, David Solomon, Goldman’s chief executive, and his two top lieutenants described the Alternatives Capital Markets and Strategy Group as a “unique opportunity” to attract more funds from outside investors.

The alternatives platform will cover everything from the private-equity, infrastructure and debt investments offered by Goldman’s merchant bank to the partnerships, co-investments and funds offered through Goldman’s investment management arm.

Attracting more third-party funds has been a key aim of Mr Solomon and his lieutenants, who have spoken about creating an investment business like Blackstone, perhaps the world’s most powerful alternative money manager.

Goldman executives hope that boosting its investing division will help lift its share price, now languishing near post-crisis lows on a price-to-book value basis. – Copyright The Financial Times Limited 2019