Goldman creates private investment platform as IPOs delay
Goldman Sachs has consolidated its private company investment operations into a dedicated platform to capture growing demand for pre-IPO stakes as mega-startups delay public listings.
Goldman Sachs has launched a new alternative investments platform aimed at giving wealthy clients and family offices direct access to mature private companies. The unit merges the bank's fiduciary single-asset investment team with its family office direct investment operation. Matt Doherty will lead the platform while continuing to oversee the bank's broader alternatives business.
Alongside primary investments, the bank is establishing a secondary advisory group. This new desk will facilitate the trading of private stakes and advise clients on unwinding off-balance-sheet positions. The move directly addresses a major liquidity constraint that has historically limited private market allocations.
The bank is deliberately avoiding early-stage venture capital in favor of established businesses with proven revenue. Artificial intelligence is a major driver of this current demand, with Goldman directing clients toward physical AI infrastructure like data centers. "There has been a lot of focus on the big growth tech names and getting clients access to those before they debut in the public markets," said Kristin Olson, global head of alternatives for wealth.
The reorganization reflects a structural shift in equity markets where the most valuable startups are staying private much longer. Early private investors are now capturing the bulk of valuation growth before public market investors can participate. "Companies are going public at a trillion dollars," Olson told CNBC. "If you haven't participated along the way, you're clearly missing a big part of the growth cycle."
Goldman has spent two decades brokering direct stakes in late-stage private companies, including Facebook before its 2012 listing. More recently, the bank has facilitated investments in SpaceX, Stripe and Canva. Late last month, Goldman served as lead underwriter on the SpaceX IPO, a deal structured to raise up to $75 billion at a valuation exceeding $2 trillion.
The platform launch follows a record second quarter for the bank. Goldman reported $20.34 billion in revenue for the three months ended June 30, a 39% increase from the prior year driven by a surge in equities trading and dealmaking. Investment banking fees reached $3.40 billion, representing a 55% year-over-year jump.
