Goldman Sachs has launched a new alternative investment platform to expand its private market offerings for wealthy clients, according to an internal memo reviewed by Reuters. The platform will be led by Matt Doherty, who will continue to oversee the Wall Street bank's alternatives business. This initiative comes as investor demand for access to privately held companies continues to grow, with affluent investors increasingly seeking exposure to private companies where many high-growth startups remain unlisted for longer periods. The launch has already generated positive market response, with Goldman Sachs shares rising about 2.6% in afternoon trading Tuesday following the announcement. The move reflects a broader industry trend, with The Economic Times reporting that Wellington Management, Vanguard and Blackstone have launched two investment funds combining public and private market assets, targeting high-net-worth and mass-affluent investors through Bank of America and Merrill.
As part of the restructuring, Goldman is creating a dedicated private company investments team by combining its fiduciary single-asset investment business with its family office-focused direct investment business. The bank's Alternative Capital Markets business, which manages alternative investments for wealthy clients, will remain the core business within the new platform. The newly formed Alternative Investments Platform combines Goldman Sachs' existing alternatives business with two dedicated teams: the Private Company Investments (PCI) team and the Secondary Advisory Group. According to the internal memo, Goldman Sachs Wealth Management co-heads John Mallory and Nishi Somaiya, together with Kristin Olson, global head of Alternatives for Wealth, emphasized the firm continues to see significant opportunities to expand its Apex business, which provides specialized investment services to family offices and ultra-high-net-worth clients worldwide.
The platform will allow clients to invest directly in individual private companies rather than through traditional private equity funds, providing investors greater flexibility in accessing the growing private markets. The platform will also offer advisory services for buying and selling private company stakes, as reported by Reuters. This direct access approach addresses client demand to access private growth firms before their public listings, with the firm targeting businesses with established products, meaningful revenue and clearer routes to profitability. According to CNBC, Goldman's goal is to help clients identify promising companies before they become household names, generally focusing on later-stage companies that have established products, meaningful revenue and clearer paths toward profitability. The changes are aimed at building on the growth of Goldman Sachs' alternatives business while strengthening its private markets platform.
The surge in artificial intelligence-related investments has further strengthened demand for private market assets, as reported by Reuters. Beyond model developers, Goldman is steering clients toward AI-related infrastructure opportunities, including data centers and similar projects, as the bank looks to capture more of the investment activity tied to the sector. According to CNBC, Goldman is increasingly steering clients toward investments in the infrastructure underpinning AI, including data centers and related projects. The AI investment boom is increasing interest in the private markets strategy, with executives highlighting AI-related momentum across investment banking, trading and financing. Speaking to CNBC, Goldman executives noted that today's largest companies often achieve enormous valuations before listing publicly, making private market participation increasingly important for long-term investors.
The move underscores Goldman Sachs' broader strategy of growing its wealth and asset management business, which generates more predictable revenue than the firm's traditional trading and investment banking operations. According to The Economic Times, global wealth held by high-net-worth individuals rose to $98.3 trillion by the end of 2025, citing data from Capgemini, underscoring the expanding pool of potential investors for private market products. The launch comes as asset managers increasingly target wealthy individual investors to drive fundraising, particularly as traditional institutional investors such as pension funds have slowed commitments amid a challenging exit environment for private assets. The new secondary advisory group is expected to broaden the firm's marketplace for private holdings and advise clients seeking exits from investments held outside Goldman. Despite moderation in inflows into some private credit strategies, The Economic Times notes that Blackstone has continued to see healthy demand for private equity products, with Blackstone President Jon Gray highlighting strong inflows in June.
