Goldman Sachs seeks next SpaceX for wealthy clients

InvestorDaily

Goldman Sachs has created a private markets platform for wealthy clients and family offices who increasingly want direct stakes in fast-growing private companies. According to a memo seen by CNBC, the alternative investments platform combines the bank’s existing alternatives business with two newly-established teams. CNBC said the new teams will focus on direct investments in private companies, rather than broader private equity funds, and on helping clients buy and sell those stakes. Goldman said it will steer clear of early-stage ventures, instead focusing on more mature companies with strong existing attributes — with client interest heavily concentrated in AI names. 

According to the firm, the idea is to identify the most promising companies, such as the next SpaceX or Facebook, before they become household names. It comes amid a longer-running trend of private companies choosing to stay private for longer, with SpaceX being the standout case. Targeting a US$1.77 trillion valuation upon its 12 June listing, the company raised US$75 billion to become the largest public debut in history. 

The rest of this article can be found at investordaily.com.au.