Goldman Sachs boss David Solomon said he expects the firm to raise over $70bn (£54.2bn) for alternative investments in 2025, and highlighted the growth of private credit as “one of the most important structural trends in finance today”.
In a letter to shareholders to accompany the Wall Street behemoth’s annual report, Solomon noted the rapid growth of private assets, prompting the firm to launch its Capital Solutions Group earlier this year to serve that market more effectively.
“The combination of a preeminent corporate franchise with a globally scaled investing platform allows us to identify the most compelling opportunities for our investing clients across private credit, private equity and other assets,” he said.
The Capital Solutions Group, first unveiled on 13 January, will combine and grow the firm’s suite of financing, origination, structuring and risk management solution activities in its global banking and markets division.
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“While the Capital Solutions Group sits within Global Banking and Markets, the ability to source these private asset opportunities provides both important capital for our banking clients and unique investments for our asset management and wealth management clients,” Solomon said in the letter.
Additionally, the letter highlighted growth in Goldman Sachs’ asset and wealth management division last year, resulting in management and other fees exceeding $10bn.
Within alternatives, Goldman Sachs is scaling its flagship fund programmes and developing new strategies, Solomon said.
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“We remain focused on penetrating the institutional client base and expanding our wealth channel,” he added. “We achieved over $70bn in alternatives fundraising in 2024, and we expect fundraising in 2025 to be consistent with levels achieved in recent years.”
Goldman Sachs saw its revenues rise by 16 per cent year-on-year to $53.5bn last year, while earnings per share grew by 77 per cent to $40.54.
