Displaying items by tag: Goldman Sachs

Goldman Sachs Asset Management's alternative investments platform has raised over $20 billion for its latest senior direct lending fund, West Street Loan Partners V. 

This fund focuses on supporting private equity-backed global businesses and has already committed $4 billion across 37 portfolio companies. Direct lending, a significant segment of private credit, has grown rapidly due to fewer regulatory hurdles for non-bank entities. Goldman Sachs plans to expand its private credit portfolio from $130 billion to $300 billion within five years.

The latest fund secured $13.1 billion in equity capital, $550 million in co-investment vehicles, and $7 billion in managed accounts. Capital was raised from both existing and new investors, along with contributions from Goldman Sachs and its employees.

Finsum: Direct lending is one of the biggest streams of private credit and growing with the focus on niche assets.

Goldman Sachs has raised $21 billion for private credit investments, its largest fund yet in this asset class. 

Fresh capital, borrowed funds, co-investments, and SMAs are all a part of the how the firm has secured its newest private lending channel. This initiative is crucial for Goldman to demonstrate its ability to attract substantial external funds, focusing on steady fees instead of occasional large revenues. 

High-net-worth individuals and institutional investors alike are increasing their allocations to alternatives, viewing private credit as a valuable investment. With plans to double its private credit assets to $300 billion in five years, Goldman is leveraging its extensive experience while other banks form partnerships to enter this market.

Finsum: Alternatives are a good way to hedge against the mainstream macro volatility problems looming on traditional portfolios

Goldman Sachs Asset Management (GSAM) is aiming to become one of the top 5 providers of model portfolios. Currently, GSAM is the ninth largest in terms of asset managers, with model portfolio assets of $14.5 billion. Over the next decade, model portfolios are projected to have more than $11 trillion in assets in total.

According to Alexandra Wilson-Elizondo, the co-CIO of GSAM’s multi-asset solutions group, the firm’s strategy is to outgrow its competitors rather than take existing market share as model portfolio assets are projected to grow 20% annually. Model portfolios consist of off-the-shelf strategies and custom models. Demand for the latter has been robust among wealthy clients.

Increasing adoption by financial advisors is the primary growth driver for the category. By decreasing time and resources spent on investment management, advisors can add more value in areas like client service, tax planning, and estate management. 

Currently, the leading provider of model portfolios among asset managers is Blackrock, followed by Wilshire Associates, Capital Group, and Vanguard. In 2019, GSAM bought S&P Global Market Intelligence, and it acquired NextCapital Group in 2022 to build the foundations of its model portfolio business.

Finsum: Goldman Sachs is aiming to grow its model portfolio segment and become a top-five provider among asset managers. Forecasts are for the category to grow 20% annually and exceed $11 trillion by 2030. 

Goldman Sachs Asset Management recently launched the Goldman Sachs Community Municipal Bond ETF (GMUN). The ETF, which trades on the NYSE Arca, seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg Goldman Sachs Community Municipal Index, a rules-based index designed to track the municipal securities market with remaining maturities between one and 15 years. The ETF also has screens that consider certain social or environmental factors. By focusing on 1-to-15-year maturities within the investment grade municipal bond universe, the portfolio will seek to deliver diversified market exposure with lower duration and higher credit quality than the broader municipal market. The ETF is managed by Goldman’s Municipal Fixed Income team which brings decades of experience with an active and disciplined approach to investing in a market that is vast and fragmented. The fund has an expense ratio of 0.25%. According to Goldman, targeted allocation into municipalities and projects with positive impact will provide the opportunity to invest in education, healthcare, clean energy, and more community-related initiatives.

Finsum:Goldman recently launched its first muni ETF, the Goldman Sachs Community Municipal Bond ETF (GMUN), which provides exposure to tax-exempt municipal securities with remaining maturities between one and 15 years.

JPMorgan Chase & Co.’s brokerage unit recently lured a Miami team from UBS Wealth Management USA with $4.8 million in revenue, while also picking up a solo advisor from Goldman Sachs who produced $2.3 million in Boston. The Fernandez Cabrera Group, which is led by Pedro Fernandez and Jesus (J.C.) Cabrera joined J.P. Morgan Advisors on Friday and had overseen $700 million in assets as of year-end at UBS. Fernandez and Cabrera moved along with client associate Charlene Meizoso. They report to Rick Penafiel, regional director for Boston, Miami, and Palm Beach Gardens. Fernandez started his financial career at Sanford C. Bernstein & Co. in 2004 and joined UBS in 2014. Cabrera started as a broker in 1984 at First Investors Corporation and only stayed at the company for a year. He registered again in 2012 when he joined Bernstein. In addition, Brent Herbert joined J.P. Morgan in February after overseeing around $445 million in assets at Goldman. He has 13 years of experience and joined Goldman in 2017 from Mizuho Securities. Herbert also reports to Penafiel. JPMorgan is close to two years into a campaign to double its headcount from the roughly 450 at its traditional brokerage.

Finsum:J.P. Morgan lured away a $4.8 million duo from Miami, while also adding a $2.3 million solo advisor from Goldman Sachs.

Category: Wealth Management

Keywords: JPMorgan, UBS, Goldman Sachs, recruiting