Key facts
- Goldman Sachs has launched a new private markets platform for wealthy clients.
- The platform aims to expand access to privately held companies.
- Matt Doherty will lead the new platform and continue to oversee the bank's alternatives business.
- The initiative involves combining existing investment businesses into a new private company investments team.
- The move is intended to bolster Goldman Sachs' alternatives business and private markets capabilities.
Goldman Sachs has established a new private markets platform designed to broaden its alternative investment offerings for its wealthy clientele, according to an internal memo obtained by Reuters. This initiative reflects a broader trend among Wall Street institutions to cater to increasing investor demand for access to privately held companies.
The platform will be headed by Matt Doherty, who will continue his role overseeing the bank's existing alternatives business. The move comes as many fast-growing startups, such as Elon Musk's SpaceX, are remaining private for longer periods, allowing investors to potentially benefit from significant valuation increases before a public offering, a trend further amplified by the AI boom.
As part of the restructuring, Goldman Sachs is creating a new private company investments team by merging its fiduciary single-asset investment business with its direct investment business focused on family offices. The stated intention behind these changes is to leverage the growth of Goldman Sachs' alternatives business and enhance its private markets platform.