Goldman Sachs Expands Private Equity Credit Amid Banking Turmoil
Goldman Sachs, the US investment banking leader is seeking to expand into the private equity and asset management lending market, amid a global expansion overseas.
The move comes as part of its efforts to fill the void left by the turmoil seen at regional banks last year, and the collapse and subsequent sale of Credit Suisse to UBS.
Goldman Sachs: Filling a market gap
Goldman Sachs has already purchased a US$15bn loan facilities portfolio from one such failed bank, Signature Bank, during a Federal Deposit Insurance Corp (FDIC) auction.
Speaking to Reuters, Goldman Sachs’ Global Head of Mortgage and Structured Products, Maheshwar Saireddy, says: “The focus is to lend to large alternate asset managers, private equity sponsors.
“One of the big initiatives we’ve been working on is to create more stable revenue in our global banking and markets businesses.”
Recently bolstering its US business, Goldman Sachs has aimed its expansion for Europe, the UK and Asia, reportedly adding staff in Bangalore and Dallas for its lending market expansion.
The investment bank’s new portfolio includes loans to core areas of its client base, including private equity companies and venture capital funds, providing options to manage their capital call facilities or subscription line loans.
