Goldman Sachs is sounding (and acting) a lot more like private equity

Published On Jan 20, 2025, 4:00 AM

Goldman Sachs is increasingly adopting a private equity-like approach as it emphasizes the importance of private markets for future growth. Recently, the bank introduced a new executive compensation structure that includes 'carried interest', a common incentive in private equity. This shift also reflects a move towards a newly formed 'capital solutions group' that aims to capitalize on the growing private credit market, which has seen substantial growth due to regulations limiting traditional banks' lending capacities. Goldman’s CEO David Solomon noted the challenges of being a public company, suggesting a trend where more companies might opt to stay private longer due to increasing regulatory burdens and the desire for operational flexibility.