© Shutterstock Goldman Sachs (GS) to reduce alternative investments weighing on earnings
by Michael Elkins
Reuters is reporting today that the asset management arm of Goldman Sachs (NYSE:) will significantly reduce the $59 billion of alternative investments that weighed on the bank’s earnings.
Goldman Sachs plans to unload its holdings in the coming years and replace some of those funds on its balance sheet with outside capital, Julian Salisbury, Goldman Sachs’ chief investment officer for asset and wealth management, told Reuters in an interview.
“I would expect to see a significant decline from current levels,” Salisbury said. “It won’t go to zero because we will continue to invest in and along with the funds, as opposed to individual transactions on the balance sheet.” The move is an extension of a strategy laid out in 2020, as the bank aims to reduce its balance sheet investments and increase fee income.
The bank will provide more details on its asset plan during Goldman Sachs’ investor day on February 28, it said.
GS shares were up 0.63% near the end of the trading day on Monday.
