Global investment bank Goldman Sachs is consolidating part of its business into the private credit-focused Capital Solutions Group, combining its comprehensive suite of financing, origination, structuring and risk management solution activities in Global Banking & Markets.
The firm will also expand its alternatives investment team in Asset & Wealth Management as the interconnection between the firm’s businesses grows.
“Our strategy and core franchise strengths position Goldman Sachs to operate at the fulcrum of one of the most important structural trends taking place in finance: the emergence and growth of private credit and other asset classes that can be privately deployed,” GS chair and CEO David Solomon said.
“There is significant demand from our investing clients for private credit and private equity – from investment grade and leveraged lending to hybrid capital and asset-backed finance as well as equity.
“Our ‘One Goldman Sachs’ approach allows us to channel the growing synergies between our clients in Global Banking & Markets and those in Asset & Wealth Management.”
The firm will create an alternatives origination group within Capital Solutions to focus on sourcing across investment grade credit, leveraged loans, real estate, infrastructure, other asset-backed finance and private equity.
Pete Lyon, currently global head of the Financial Institutions Group and the Financial and Strategic Investors Group, and Mahesh Saireddy, currently global head of Mortgages and Structured Products, will lead the Capital Solutions Group and join the firm’s management committee.
Additionally, Vivek Bantwal, global head of the Financing Group, will move to Asset & Wealth Management and partner with James Reynolds, global head of Direct Lending, to co-head Global Private Credit which oversees ~US$145 billion in total alternative assets.