July 21 (Reuters) – Goldman Sachs has created a new platform as it looks to expand its private market offerings for wealthy clients, according to an internal memo seen by Reuters on Tuesday.
The alternative investment platform will be led by Matt Doherty, who will continue to oversee the Wall Street bank’s alternatives business, the memo said.
The move comes as wealthy investors increasingly seek access to privately held companies, where many fast-growing startups are staying private for longer, allowing investors to benefit from rising valuations before an initial public offering.
Companies such as Elon Musk’s SpaceX remained privately held for years before going public last month even as its valuation surged, fueling demand among wealthy investors for private market investments. The AI boom has only bolstered that interest.
That has prompted Wall Street banks to expand their private market offerings for wealthy clients.
Alternative capital markets, which manage alternative investments for wealthy clients, will remain the core business within the platform, the memo showed.
The team will continue to help clients invest in private market assets, advise them on building alternative investment portfolios and manage those portfolios on their behalf.
As part of the changes, Goldman is creating a new private company investments team by combining its fiduciary single-asset investment business with its family office-focused direct investment business.
The changes are intended to build on the growth of Goldman Sachs’ alternatives business and strengthen its private markets platform.
CNBC had reported the news earlier in the day.
Earlier this month, Goldman Sachs exceeded second-quarter profit expectations as dealmaking picked up and market volatility amid the U.S.-Iran war boosted equities revenue to a record.
(Reporting by Prakhar Srivastava in Bengaluru and Saeed Azhar in New York; Editing by Shilpi Majumdar)
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