Wall Street Big Banks Respond to Sudden Growth of Private Equity Loans...Goldman Sachs reorganization

Goldman Sachs, a large U.S. investment bank, has undergone a reorganization that integrates some key departments related to capital markets and wealth management to systematically respond to the fast-growing private equity lending market.

Goldman Sachs said it has established a group of capital solutions as an in-house organization to strengthen its services to businesses and investment clients, and to expand its businesses related to private equity loans and private equity funds.

This is interpreted as a one-stop response to the growth of private equity loans and private equity markets by linking the tasks of key departments in the investment bank and asset management sector.

In recent years, the private equity lending market has grown rapidly on Wall Street, with non-banking financial companies such as non-banking financial intermediaries, including large hedge funds.

This is because non-banking financial companies have dug into loopholes while large banks such as JPMorgan Chase and Goldman Sachs have focused only on high-quality loans as U.S. financial authorities tighten health regulations on large banks.

"Goldman Sachs executives believe that a small number of private equity loan companies and similar financial companies will soon lead the lending market," the Wall Street Journal said.

In fact, financial companies that have focused on investing in alternative assets, including private equity loans, such as Apollo Global Management and Ares Management, have emerged as Goldman Sachs' scariest competitors.

Goldman Sachs' reorganization is interpreted as a reflection of changes in the business strategy of the big Wall Street bank, which does not want to take the initiative in line with changes in the financial market environment.

"The emergence and growth of wealth groups with private equity and private equity is the most important structural change that is happening in the financial world right now," Goldman Sachs Chairman David Solomon said.