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Goldman to cut PE exposure

Goldman Sachs is planning to significantly reduce the $59 billion of alternative investments – private equity and real estate – currently held by its asset management arm, and which dragged down the bank’s Q4 earnings, according to a report by Reuters.

Goldman Sachs is planning to significantly reduce the $59 billion of alternative investments – private equity and real estate – currently held by its asset management arm, and which dragged down the bank’s Q4 earnings, according to a report by Reuters.

The report cites Goldman Sachs’ chief investment officer of asset and wealth management, Julian Salisbury, as confirming that the bank is planning to divest the positions over the next few years and replace some of the funds on its balance sheet with outside capital.

According to reports, Goldman had a difficult final quarter of 2022, missing its profit targets by a wide margin as deal-making stalled, and has plans to reduce headcount by around 3,000, its biggest round of job cuts since the global financial rises of 2008.

Salisbury was reported as saying Goldman Sachs will provide further details on its plan to reduce its alternative assets holdings during its next investor day on 28 February.

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