The Goldman Sachs Group is engaging in 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 suite of financing, origination, structuring and risk management solution activities in global banking and markets. The firm will also expand its alternatives investment team in asset and 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,” David Solomon, chairman and CEO of Goldman Sachs, said. “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. Our One Goldman Sachs approach allows us to channel the growing synergies between our clients in global banking and markets and those in asset and 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.
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 and 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.
