Goldman Sachs Group Inc. is starting a new group called the Alternatives Capital Markets and Strategy Group, which will operate similarly to The Blackstone Group Inc., the Financial Times reported, citing a staff memo from Goldman Sachs CEO David Solomon.
The news outlet quoted Solomon as describing the new business as a "unique opportunity" for Goldman Sachs to attract more funds from outside investors. The group will cover private equity, infrastructure and debt investments offered by the company's merchant bank, as well as partnerships, co-investments and funds offered through the bank's investment management arm.
The new structure aims to entice clients to sign up for a broader array of products by offering a more "holistic" service, a source told the Financial Times. Goldman Sachs executives are also reportedly hoping this will boost the company's share price.
Goldman Sachs partners Chris Kojima and Mike Koester have been selected to head the new group, according to the news outlet.
The Financial Times' sources said the assets under management in Goldman Sachs' alternatives businesses are in the top five in the market in terms of size, and details beyond this are expected to be revealed at the company's investor day Jan. 29, along with the company's other plans.