Goldman Sachs has significantly reduced the minimum investment requirement for its new alumni-focused fund, the 1869 program, aimed at private market investments. The move aims to attract a wider pool of former partners, offering them access to Goldman's asset management expertise and potentially lucrative private market opportunities.
Goldman Sachs has significantly reduced the minimum investment requirement for its new alumni-focused vehicle, designed to channel funds into the bank's private market funds. This initiative, dubbed the 1869 program, echoes a similar fund launched in 2022 and takes its name from the year Goldman Sachs was founded. The latest 1869 program, like its predecessor, operates as a fund of funds, strategically investing across various private market vehicles managed by Goldman Sachs Asset Management .
Notably, the bank has lowered the investment threshold from $250,000 to $25,000, making it more accessible to a broader pool of former partners. Sources familiar with the matter indicate that over half of former Goldman partners participated in the original 1869 fund, raising approximately $1 billion.This new fund coincides with Goldman Sachs's intensified focus on the private investment industry, which has emerged as a dominant force on Wall Street. Former partners investing in the 1869 program will benefit from reduced fees, paying a 0.63% management fee and a 6.3% performance fee. This represents a 50% discount compared to the typical fees charged by Goldman Sachs for similar funds. The bank declined to comment on the matter. Goldman Sachs CEO David Solomon has strategically positioned the bank's asset management division as a cornerstone of his overall strategy. Investors highly value these businesses for their consistent recurring management fees, a stark contrast to the volatility inherent in Goldman Sachs's trading and investment banking divisions. Goldman Sachs Asset Management currently oversees $3.1 trillion in assets, with approximately $336 billion allocated to alternative investment funds, encompassing private equity, real estate, and secondary funds that acquire unwanted holdings from investors seeking liquidity. Goldman Sachs's share price has surged by about a third in the past six months, mirroring the upward trajectory of other Wall Street giants following Donald Trump's re-election. This surge is attributed to anticipation of a wave of deregulation and a resurgence in dealmaking. The 1869 program is part of Solomon's broader initiative to cultivate stronger ties with Goldman Sachs's extensive alumni network. Employees frequently transition from the bank to senior positions at clients like hedge funds or private equity firms, or enter government service. Some notable Goldman Sachs partner alumni include Gary Cohn, a former economic advisor to Trump, ex-Australian Prime Minister Malcolm Turnbull, and Jim Esposito, President at trading firm Citadel Securities. Although Goldman Sachs transitioned from a formal partnership structure after its public offering in 1999, it continues to select new partners every two years, and the title remains highly coveted on Wall Street due to its prestige and associated benefits. In November, the US bank inducted 95 new partners, the largest class since 2010
GOLDMAN SACHS INVESTMENTS PRIVATE MARKET ALUMNI ASSET MANAGEMENT WALL STREET
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