Goldman Sachs Group increased its targets for fundraising in its asset and wealth management businesses, driven in part by the growth in capital being allocated to alternative-investment strategies.
The company also reaffirmed its medium-term firmwide targets for return on equity of 14% to 16%, and its return on tangible equity at 15% to 17%, adding more specificity to targets previously in the mid-teens.
The New York-based bank now expects $350 billion in organic traditional long-term net inflows from 2020 through 2024, up from a $250 billion target given to shareholders during an investor day two years ago, CEO David Solomon said Thursday.
For gross alternatives fundraising, Goldman boosted its target to $225 billion from $150 billion, Solomon said. Alternative assets under management soared to $13.3 trillion globally at the end of last year, according to research firm Preqin, with the total expected to reach $23 trillion in four years. Goldman is well-positioned to capture a significant portion of growth in alternative investments, Solomon said.
“I continue to believe that scale and global matters in the asset-management business, and we have that,” Solomon said. “The strength of these platforms inside Goldman Sachs is not fully appreciated.”
— With assistance from Sridhar Natarajan.
