Goldman Sachs reshuffles private credit team

Goldman Sachs’ asset management arm is reportedly rejigging senior executives in its $110bn (£87.7bn) private credit division as it looks to grow the business.

Global head of asset and wealth management Marc Nachmann said that private credit is “the biggest opportunity set across the alternative space”, according to Bloomberg, and is looking to double the size of the business in the medium term.

A memo seen by Bloomberg revealed that Greg Olafson will be appointed global head of private credit from his current role as co-president of alternatives, so he can devote all of his time to the asset class.

Read more: Goldman Sachs bullish on private debt in 2024

James Reynolds will become the bank’s global head of direct lending and Kevin Sterling will become global head for investment-grade private credit and asset finance. Reynolds and Sterling are currently co-heads of private credit.

Goldman Sachs is one of the only Wall Street banks to have maintained a large private credit division from before the 2008 financial crisis. Its strategy is to keep the operations within its asset management arm, raising third-party capital rather than using funds from its own balance sheet.

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However, its rivals are snapping at its heels, as investment giants clamour to take advantage of the opportunities presented by the fast-growing private credit space.

JP Morgan Chase is in talks with several private credit firms about creating a syndication group where members would take a slice of each loan, according to sources cited by Bloomberg.

Read more: LendInvest founder launches private credit fund