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Goldman Sachs is creating a new business unit and elevating two executives to its management committee in an effort to combat the growing competition from private credit funds.
While other large banks like Citigroup and Wells Fargo have partnered with private credit funds, the move shows that Goldman plans to go it alone in competing against the funds that are increasingly winning more of the business financing large corporate transactions, and other areas of lending.
Goldman said the new unit, which will be called the capital solutions group and was announced in an internal memo on Monday morning, would help it better serve clients as well as grow its own private credit and private equity businesses.
Goldman said it was also expanding its asset management unit to include more emphasis on private credit.
This is a developing story