Goldman Sachs launches private markets platform for wealthy clients

Goldman Sachs has established a new alternative investments platform to expand its offerings for wealthy clients and family offices. The new group combines the firm's existing alternatives business with two newly formed teams that focus on direct investments in individual private companies, rather than broader private equity funds. This move addresses a growing demand from investors seeking access to fast-growing private companies before their public listings.

The platform aims to help clients identify promising companies before they become widely known. "Companies are going public at a trillion dollars," said Kristin Olson, global head of alternatives for wealth at Goldman Sachs. "If you haven’t participated along the way, you’re clearly missing a big part of the growth cycle."

For approximately two decades, Goldman Sachs has facilitated direct investments in later-stage private companies for its affluent clients, including opportunities in companies like Facebook before its IPO, as well as SpaceX and Stripe. The current strong demand for this asset class prompted the bank to create a more dedicated structure.

The platform focuses on identifying promising companies relatively late in their development, with established products and clear paths to profitability, rather than early-stage startups. The ongoing AI boom has further intensified demand, with Goldman Sachs increasingly directing clients toward investments in underlying AI infrastructure, such as data centers.