- Goldman Sachs has unveiled a Blackstone-like alternative investment group as part of its strategic plan.
- Goldman executives hope that boosting its investing division will help lift its share price.
- Goldman names co-heads of Alternative Investments Group
Goldman Sachs has unveiled a Blackstone-like alternative investment group as part of its strategic plan to present at the company’s much-anticipated investor day next month.
David Solomon, Goldman’s chief executive, wrote to staff in a memo on Monday.
His two top lieutenants described the Alternative Capital Markets and Strategy Group as a unique opportunity to attract more funds outside investors.
The alternative platform will cover everything from private equity, infrastructure, debt investments Goldman Sachs bank offers, co-investments, and funds through Goldman’s investment arm.
Mr. Solomon’s main aim has been to attract more third-party funds. His lieutenants have spoken about creating an investment business like Blackstone- perhaps the world’s most potent alternative money manager.
Goldman executives hope that boosting its investing division will help lift its share price. The share price is now languishing near post-crisis lows on a price-to-book value basis.
Goldman names co-heads of Alternative Investments Group
Chris Kojima and Mike Koester will now run the alternative group.
Chris Kojima is now the head of Alternative Investment & Manager Selection Groups, while Mike Koester is the chief commercial officer for Goldman’s merchant bank.
Both men have been Goldman partners since 2008.
In the reshuffle, Goldman named Raanan Agus and Mike Brandmeyer co-heads of alternative investments and manager selection.
Goldman partners Agus and Brandmeyer are replacing Chris Kojima, who will now co-lead the newly formed alternatives capital markets and strategy group inside the merchant banking division.
The new group, ACMS, will collaborate with Goldman’s merchant banking and asset management units, helping to drive conversations with investors surrounding areas such as fundraising in private markets and asset allocations strategies.
The bank’s alternative investments and manager selection business, or AIMS, advises institutional investors and private clients on the selection of private equity, hedge fund, real estate, credit, and public equity managers.
“The biggest part of our business is manager selection,” Brandmeyer said of AIMS in a phone interview. The group, which has $250 billion of assets under management, is benefiting from strong growth in private markets over the past decade, he said.
Brandmeyer and Agus are now co-chief investment officers for AIMS, which also buys stakes in asset managers as well as interests in private equity portfolios through the secondary market.
Agus, who was previously head of direct alternatives within Goldman Sachs Asset Management, will continue overseeing the unit’s energy and infrastructure group, as well as Goldman’s special purpose acquisition company, GS Acquisition Holdings Corp., according to one of the memos. Brandmeyer, who has worked with AIMS since its launch in 2008, was previously co-head of the group’s secondaries business.
Under the leadership changes, Kojima will co-lead ACMS alongside Michael Koester, the chief commercial officer for Goldman’s merchant banking division, who oversees such areas as product development and fundraising.
AIMS will remain inside the bank’s consumer and investment management division, which houses GSAM.