In response to growing demand, Goldman Sachs has established a new platform to expand its services for high-net-worth individuals and family offices who are increasingly seeking direct stakes in fast-growing private companies.

According to an internal memo, the newly formed "Alternative Investment Platform" integrates the bank's existing alternative assets business with two newly established teams.

The memo indicates that the new teams will focus on direct investments into individual private companies, as opposed to traditional private equity fund products, while also assisting clients with buying and selling these stakes.

Kristin Olson, Global Head of Alternative Investments for Goldman Sachs Wealth Management, stated in an interview that market interest in large, growth-stage technology firms remains high, with clients wanting investment opportunities before these companies go public.

This move by Goldman Sachs aligns with two major trends reshaping Wall Street. Firstly, the bank has been steadily increasing its focus on wealth and asset management over many years, as these businesses are seen as providing more stable revenue compared to investment banking and trading. Secondly, today's most successful startups are staying private for longer than in the past, allowing early investors to capture the majority of returns before public markets can participate.

Olson remarked that some companies reach valuations in the trillions of dollars by the time they list. If an investor has not participated during their growth phase, they miss out on a significant portion of the value creation cycle.

The AI Boom Fuels Demand

Olson noted that Goldman Sachs has been arranging direct investments in late-stage private companies for its wealthy clients for about two decades, with early examples including Facebook before its 2012 IPO, and later deals involving SpaceX, Stripe, and Canva. She added that sustained client demand for this asset class ultimately prompted management to spin this activity out as a dedicated business.

Olson said Goldman's aim is to help clients identify potential in companies before they become household names.

She pointed out that the bank typically does not target early-stage startups, but instead focuses on later-stage companies with established products, substantial revenue, and clearer paths to profitability, seeking what she described as the "optimal balance" between risk and reward.

The AI investment boom has further accelerated this demand. Olson stated that beyond leading model developers, Goldman is increasingly steering clients towards investments in the underlying AI infrastructure, including data centers and related projects.

The launch of this business follows Goldman Sachs reporting record quarterly revenue, with executives repeatedly highlighting that AI-related activity is driving growth across its investment banking, trading, and financing divisions. The results have reinforced investor views that the bank is well-positioned to benefit from multiple stages of the AI investment cycle.

This restructuring also formalizes a growing business focus: helping clients find liquidity solutions for their private investments.

Through a newly established secondary advisory team, Goldman plans to develop a marketplace for clients to buy and sell private holdings, while also providing advisory services to those looking to exit investments made outside of Goldman's platform.

Olson concluded that the decision to establish this as a standalone business clearly marks it as a key strategic priority for the firm.