Goldman Sachs launches Capital Solutions group to grow private credit and equity business – FinTech Futures: Fintech news 

Goldman Sachs has unveiled several new actions as it looks to strengthen its services for corporate and investor clients and grow its business in private credit, private equity, and other asset classes.Goldman Sachs forms new Capital Solutions groupThese actions include the creation of a Capital Solutions group and the expansion of its alternatives investment team in its Asset and Wealth Management division.The Capital Solutions group will bring together and expand Goldman Sachs’ activities related to financing, origination, structuring and risk management, which are currently part of its Global Banking and Markets division.Within the Capital Solutions group, Goldman Sachs will also create a new Alternatives Origination team, which will focus on sourcing across various asset classes like investment grade credit, leverages loans, real estate, infrastructure and private equity.Pete Lyon, global head of the Financial Institutions group and the Financial and Strategic Investors group, and Mahesh Saireddy, global head of mortgages and structured products, will lead the Capital Solutions group and join the bank’s management committee.Vivek Bantwal, global head of the Financing group, will move to Asset and Wealth Management to co-head Global Private Credit, working alongside James Reynolds, global head of direct lending.David Solomon, chairman and CEO of Goldman Sachs, says the proposed actions will position the bank 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”.Solomon says there is “significant demand” for private credit and private equity among Goldman Sachs’ investing clients, while its One Goldman Sachs framework, which integrates its investment banking and markets businesses, “allows us to channel the growing synergies between our clients in Global Banking and Markets and those in Asset and Wealth Management”.In November, Goldman Sachs announced that it was exploring “strategic opportunities” to spin out its blockchain-based technology platform, GS DAP, into a standalone business.