Goldman Sachs Group Inc. is stepping up its engagement with regulators as both profits and oversight in the private markets sector intensify, according to Marc Nachmann, the firm’s global head of asset and wealth management.
In an interview with Television in Sydney on Monday, Nachmann highlighted that private credit and secondaries have been the fastest-growing areas for the bank over the past year. As these asset classes continue to expand, regulators worldwide are increasingly focusing on understanding and regulating the space.
“We continue to believe private markets are highly attractive,” Nachmann remarked. “In the alternatives sector, we see ourselves as a top-five player and are aiming to become a top-three player.”
Private credit has significantly altered the landscape of Wall Street in recent years, challenging traditional syndicated markets dominated by major banks. This shift, coupled with the relative opacity of private markets, has raised concerns over potential hidden risks.
In response to this growth, Goldman Sachs made a strategic move in January by promoting several key executives and consolidating teams to form a new capital solutions group, signaling the increasing significance of private markets for the firm.
Nachmann also pointed out that private credit has outperformed public credit, just as private equity has surpassed public equity markets, solidifying its role as a key growth area for the bank as it continues to track investor interest.
Additionally, the firm has made significant strides in expanding its wealth management business in Australia over the past two years, with plans to further develop this area moving forward.
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