Goldman Sachs seeks to more than double private credit portfolio
Goldman Sachs Asset Management is aiming to more than double its private credit portfolio in five years, to run $300bn (£234.5bn).
Marc Nachmann, global head of asset and wealth management, told Reuters in an interview that the group is seeking to grow its private credit portfolio from $130bn currently.
The comments come at a time of increasing interest in private credit, with many traditional asset managers looking to launch divisions or expand existing capabilities.
Others that have been pushing into private credit include Morgan Stanley, looking to double its private credit portfolio to $50bn, and BlackRock, which acquired private debt specialist Kreos Capital last year.
Read more: Goldman Sachs launches private credit fund for wealth market
GSAM has been investing in private credit for nearly three decades and employs more than 160 people dedicated to the asset class. The bulk of its private credit assets are in senior direct lending.
In a recent video, Lotfi Karoui, chief credit strategist at Goldman Sachs, said private credit will continue to grow and actually be more robust than public credit in a higher cost of capital environment.
He highlighted the benefits of rising rates for the asset class and noted that the concerns over the rise of private credit are largely overblown.
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