Goldman Sachs Group is set to plow at least US$30 billion (S$40.6 billion) into Asian alternative assets over the next five years after revamping its operations and starting an aggressive campaign to raise outside funds in a bid to overtake investment giants such as KKR & Co and Blackstone. Globally, the firm has already pulled in more than half of the US$150 billion it is targeting to raise for the alternatives business under a plan outlined by chief executive David Solomon in 2019. The inflows have helped swell assets under management to US$416 billion, topping firms such as Carlyle Group, but lagging behind KKR and Blackstone.
Goldman’s alternatives group typically invests US$50 million to US$100 million equity in start-ups, building significant minority stakes via multiple rounds, with a threshold of US$150 million. In real estate, Goldman has deployed US$7.7 billion of its own capital in more than 100 deals, generating a 26 per cent return since 2012. It is also targeting credit investments, such as mezzanine debt, senior loans and structured credit in Asia. The firm plans to build a bigger presence in real estate in developing markets such as China, South Korea and India, according to Mr Murata. To get closer to the ground in South Korea, it recently moved the Hong Kong-based team to Seoul.