The move underscores Goldman Sach’s new focus on getting better returns from its asset-management division.
As per a report from the Wall Street Journal citing sources familiar with the matter at hand, Goldman Sachs Group Inc its private-investing arms and creating a new division which will have nearly $140 billion in assets.
According to the report, Goldman Sachs is likely to merge four of its businesses that invest in private companies, real estate and other hard-to-access deals and create a single new division.
Goldman said it had no comment to make on this report.
According to the report, the new division’s core will be its existing merchant-banking business which has around $100 billion invested in private assets.
Merging with this division will be what Goldman Sachs said is the “special situations group,” which the WSJ described as an opportunistic portfolio of around $30 billion; Goldman Sach’s strategic investing group, which makes smaller bets on financial technology startups, will also be merged.
Incidentally, both groups are currently part of the company’s trading division and invest Goldman’s own money.
“The new unit will also include private-equity and real-estate groups that are now part of the bank’s asset-management division and invest clients’ money”, said WSJ in its report.
Goldman Sachs is also planning on raising new funds, especially from the real estate sector and may do a fundraising later this year for a real-estate equity fund – its first since the 2007-2009 financial crisis.