Goldman Sachs has created a new alternative investments platform to expand offerings for wealthy clients and family offices seeking direct stakes in fast-growing private companies. The platform combines Goldman's existing alternatives business with two newly established teams focused on direct investments in individual private companies and helping clients buy and sell those stakes, according to a memo. The move reflects Wall Street's shift toward wealth and asset management for steadier revenues, while the most successful startups stay private far longer than previously, allowing early investors to capture gains before public market debuts.
Goldman Sachs Combines Existing Business with Two New Teams
The alternative investments platform merges Goldman's existing alternatives business with two newly established teams, according to a memo seen by CNBC. The new teams focus on direct investments in individual private companies rather than broader private equity funds, and on helping clients buy and sell those stakes. Kristin Olson, Goldman Sachs' global head of alternatives for wealth, stated there has been significant focus on big growth tech names and providing clients access before public market debuts. Goldman has been arranging direct investments in later-stage private companies for wealthy clients for roughly two decades, Olson said, citing Facebook before its 2012 IPO and later SpaceX, Stripe and Canva. Growth in demand for the asset class convinced executives to break out the business, she added.
Platform Targets Later-Stage Companies and AI Infrastructure
Goldman generally focuses on later-stage companies that have established products, meaningful revenue and clearer paths toward profitability, Olson said, seeking a "sweet spot" between risk and return. The firm's goal is to help clients identify promising companies before they become household names, according to Olson. The AI investment boom has intensified demand, with Goldman increasingly steering clients toward investments in infrastructure underpinning AI, including data centers and related projects, Olson said. The announcement came days after Goldman reported record quarterly revenue, with executives highlighting AI-driven activity across investment banking, trading and financing businesses.
Secondary Advisory Group Expands Private Holdings Marketplace
The announcement formalizes Goldman's growing business helping clients find liquidity for private investments. Through its new secondary advisory group, the firm plans to expand a marketplace that allows clients to buy and sell private holdings while also advising clients looking to exit investments held outside Goldman. "We said, let's break that out and let's make it very clearly defined as something that we're leaning into," Olson said.
FAQ
What did Goldman Sachs create for wealthy clients seeking private company investments?
Goldman Sachs created a new alternative investments platform that combines the firm's existing alternatives business with two newly established teams. The teams focus on direct investments in individual private companies and helping clients buy and sell those stakes.
Why is Goldman Sachs expanding its private company investment offerings?
The expansion reflects client demand for access to fast-growing private companies before they debut in public markets. Companies are staying private far longer than previously, with some going public at trillion-dollar valuations, meaning investors who haven't participated along the way miss a significant part of the growth cycle, according to Kristin Olson, Goldman's global head of alternatives for wealth.
What types of companies does Goldman Sachs target for client investments through this platform?
Goldman generally focuses on later-stage companies that have established products, meaningful revenue and clearer paths toward profitability, seeking a "sweet spot" between risk and return, according to Olson. The firm has arranged investments in companies including Facebook before its 2012 IPO, SpaceX, Stripe and Canva, and is increasingly steering clients toward AI infrastructure investments including data centers.
