Goldman Sachs is reportedly in discussions to obtain a $10 billion mandate from the Kuwait Investment Authority (KIA) for its asset-management division. According to a Bloomberg News report on Monday, these talks involve the KIA allocating funds over several years across multiple Goldman Sachs funds. The investments would primarily target Goldman’s private equity, credit, and infrastructure sectors. Goldman Sachs declined to comment on the matter, and KIA has yet to respond to requests for comment. Goldman Sachs is a leading global investment banking, securities, and investment management firm that provides a wide range of financial services to a substantial and diversified client base. The firm operates in various financial markets and is known for its advisory services, underwriting, and trading activities.
The potential mandate comes as Goldman Sachs strategically shifts its focus towards private markets and alternative-asset businesses. This move aims to diversify its revenue streams beyond traditional trading and investment banking activities. CEO David Solomon mentioned in an earnings call earlier this month that the bank intends to raise $100 billion in alternative assets this year, including private credit, real estate, and hedge funds. This target exceeds previous expectations, underscoring Goldman’s commitment to expanding its presence in the alternative investment space.
At the end of the third quarter, Goldman Sachs’ alternative assets under supervision totalled $374 billion, illustrating the growing significance of this segment within the firm’s overall portfolio. The discussions with KIA coincide with Goldman Sachs’ broader expansion efforts in the Gulf region. Earlier this month, the firm opened an office in Kuwait, signalling its intent to enhance services for regional clients and strengthen its foothold in the Middle East market.
Kuwait, a nation rich in oil reserves, is the headquarters of KIA, one of the world’s largest sovereign wealth funds, making it a crucial player in global finance and investment.
