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Goldman Sachs expands private equity credit amid banking turmoil
Goldman SachsThe US investment banking leader is looking to expand into the private equity and asset management lending market as part of a global expansion abroad.
The move is part of an attempt to fill the void left by last year’s turmoil at regional banks and the collapse and subsequent sale of Credit Suisse to UBS.
Goldman Sachs: Filling a gap in the market
Goldman Sachs has already purchased a $15 billion loan portfolio from one of these failed banks, Signature Bank, during a Federal Deposit Insurance Corp (FDIC) auction.
Speaking to Reuters, Maheshwar Saireddy, global head of mortgages and structured products at Goldman Sachs, says: “The goal is to lend to large alternative asset managers, private equity sponsors.
“One of the big initiatives we are working on is creating more stable revenues in our global banking and markets businesses.”
Recently beefing up its US operations, Goldman Sachs has targeted its expansion into Europe, the UK and Asia, adding staff in Bangalore and Dallas as it expands its lending market.
The investment bank’s new portfolio includes loans to key areas of its client base, including private equity firms and venture capital funds, providing options to manage their capital call structures or subscription lines loans.