Goldman builds private-market hub for wealthy clients chasing startup stakes

Goldman Sachs is giving its wealthy clients a clearer path into private-company bets, creating a new platform aimed at investors who want access to fast-growing businesses before they reach the stock market.

The bank has formed an alternative investments platform that brings together its existing alternatives operation with two newly created teams, according to a Goldman memo reviewed by CNBC. The setup is aimed at wealthy clients and family offices seeking direct stakes in individual private companies.

CNBC reported that the new teams will focus on investments in specific private businesses rather than broad private equity funds, as well as helping clients buy and sell those holdings.

Kristin Olson, Goldman Sachs’ global head of alternatives for wealth, told CNBC that clients have shown strong interest in major growth technology companies before they list publicly. “There has been a lot of focus on the big growth tech names and getting clients access to those before they debut in the public markets,” Olson said.

Private companies are staying private longer

The move lands at the intersection of two big shifts on Wall Street, according to CNBC: Goldman has been building up wealth and asset management, businesses viewed as steadier than trading and investment banking, while high-profile startups have delayed public listings for longer periods.

That delay can leave public-market investors arriving after much of a company’s growth has already been captured by earlier backers. Olson told CNBC: “Companies are going public at a trillion dollars. If you haven’t participated along the way, you’re clearly missing a big part of the growth cycle.”

Goldman has arranged direct investments in later-stage private companies for wealthy clients for about 20 years, Olson said. She pointed to Facebook before its 2012 initial public offering, along with later opportunities involving SpaceX, Stripe and Canva.

The bank is now turning that work into a more defined business because demand has grown, Olson told CNBC. The aim, she said, is to help clients spot promising companies before they become widely known.

AI demand adds fuel

Goldman is generally focused on later-stage private companies, Olson said, rather than very young startups. She told CNBC the bank looks for businesses with established products, meaningful revenue and clearer routes toward profitability.

The boom in artificial intelligence investment has added to client appetite, according to Olson. Beyond companies building leading AI models, Goldman is pointing clients toward the infrastructure behind the technology, including data centers and related projects, CNBC reported.

The platform also puts a sharper label on Goldman’s work in private-market liquidity. Through a new secondary advisory group, the firm plans to expand a marketplace where clients can trade private holdings and advise clients trying to exit investments held outside Goldman, according to CNBC.

The announcement follows Goldman’s report of record quarterly revenue, CNBC said, with executives pointing to AI-linked activity across investment banking, trading and financing.

This story draws on original reporting from CNBC.