Goldman Sachs to more than double its private credit portfolio to $300 billion

Goldman Sachs Group Inc (NYSE: GS) is in focus this morning after announcing plans of more than doubling its private credit portfolio to $300 billion in five years.

Goldman Sachs’ current portfolio sits at $130 billion

March Nachmann – its global head of asset and wealth management dubbed private credit “a huge opportunity” in an interview with Reuters on Tuesday.

The investment bank has been active in that space for close to three years. Its current portfolio sits at about $130 billion at writing.

The news arrives a month before Goldman Sachs is scheduled to report its financial results for the first quarter. Consensus is for it to earn $8.62 a share versus $8.79 per share a year ago.

$GS has gained well over 30% since late October and currently pays a dividend yield of 2.85%.

What have other big banks committed to private credit?

Note that Goldman Sachs has committed to a much larger footprint in private credit than its peers.

Morgan Stanley, for example, wants to double its portfolio to $50 billion while JPMorgan has earmarked roughly $10 billion for private credit.  

Goldman Sachs plans on raising up to $50 billion this year for alternative investments – of which, about 33% (at least) will be dedicated to private credit strategies, as per March Nachmann.

Late last year, Apple Inc was reported to have proposed to end its high-profile partnership with $GS (find out more). Wall Street currently has a consensus “overweight” rating on shares of Goldman Sachs Group Inc.