The $ 2 billion fund would make it one of the largest in the field, Bloomberg reported. It could help Goldman Sachs court larger investors and investors. SoftBank’s Vision Fund has $ 100 billion, but otherwise not many companies have investment funds in the billions.
The move comes after Goldman’s recent investments in high growth, including bets on Uber and Plaid when those companies were still private. The company’s plan is to manage more money for clients and divert investment from its own balance sheet. There are two goals – to free up capital and generate a more stable income stream from management costs, according to Bloomberg.
By investing in startups at various stages, Goldman was able to set up relationships to work with later on once they are public. Bloomberg reported that the company has spent several years building a growth equity unit that has more than $ 8 billion under management.
According to Bloomberg, the field is growing, though. Tiger Global Management, Sequioia Capital and TCV are all working on similar projects.
While the talks are still at an early stage, according to sources Bloomberg is talking about, funding could begin next year. The company has a few high-net worth clients who are expected to be partners in the fund, and the investments will be between $ 30 million and $ 200 million per company, Bloomberg reported.
Goldman Sachs has been furiously pushing to acquire General Motors’ GM card business, which is at the forefront of new technology to connect customers to companies digitally in a car, including booking hotel rooms or paying for gas.
The bank also recently appointed a new digital asset leader in Matthew McDermott, who previously managed digital assets for the company.
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NEW PYMNTS REPORT: THE FI’S MANUAL TO MODERNIZE DIGITAL PAYMENTS
Instant payouts have become the name of the game for vendors and suppliers who stream shrinking revenues, but banks can fight themselves to facilitate faster B2B payments. In the month The FI’s Manual for Modernizing Digital Payments talks to PYMNTS Vikram Dewan, Deutsche Bank’s chief information officer, on how regulatory compliance complicates the digitalisation of payments – and why change must begin with paper shifts.
