Goldman Sachs Restructures Business for Financing Growth

Goldman Sachs Inc. GS is reorganizing its structure to focus on financing, reflecting its ambition to lead the growing private credit market and private-equity dealmaking. The firm is combining three units in its global banking and markets division into a new group called the Capital Solutions Group.

What To Know: According to The Wall Street Journal, this group will integrate the financial sponsors team, which works with private-equity firms; the global financing group, which finds investors for deals and part of its FICC financing team, which provides loans secured by collateral to lenders, including private credit funds.

The new structure aims to better align with the rise of private credit, which has grown as nonbanks increasingly dominate lending markets. Goldman expects this trend to continue alongside a rebound in private equity activity and corporate investment in technology and infrastructure.

The bank also plans to expand asset-backed lending within its FICC unit, leveraging both its balance sheet and capital sourced from its asset-management arm. The Capital Solutions Group will help develop funds for institutional clients like insurance companies and pension funds to invest in these loans.

Pete Lyon and Mahesh Saireddy will lead the new group and join Goldman's management committee, a key decision-making body. Meanwhile, Vivek Bantwal, head of the global financing group, will move to co-head private credit in the asset and wealth management division.

This reorganization potentially reflects Goldman's focus on financing as a major driver of growth, emphasizing the convergence of public and private markets and a collaborative approach with alternative investment firms.

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