Goldman Sachs is creating a private markets platform to attract wealthy investors

Goldman Sachs CNBC has created a new platform to expand its offerings to wealthy clients and family offices who increasingly want direct stakes in fast-growing private companies, CNBC has learned.

The new group, called the Alternative Investments Platform, combines Goldman’s existing alternatives business with two newly created teams, according to a memo first seen by CNBC.

The new teams focus on direct investments in individual private companies, rather than broader private equity funds, and on helping clients buy and sell those stakes, according to the memo.

“There’s been a lot of focus on big tech names for growth and giving clients access to those names before they debut on the public markets,” Christine Olson, global head of wealth alternatives at Goldman Sachs, told CNBC in an interview.

Goldman’s move reflects two of the biggest trends reshaping Wall Street. The company has spent years delving deeper into wealth and asset management because of its perception as providing steadier revenues than investment banking and trading. At the same time, the most successful startups remain in the private sector much longer than they used to, allowing early investors to capture most of the gains before public investors get the chance.

“Companies are going public at a trillion dollars,” Olson said. “If you haven’t been involved along the way, you’re clearly missing a big part of the growth cycle.”

Goldman Sachs has been arranging direct investments in later-stage private companies for wealthy clients for nearly two decades, Olson said, noting Facebook Before its initial public offering in 2012 and beyond SpaceXAnd the tape and the canvas. She added that the growth in demand for the asset class convinced executives to get down to business.

Olson said the company’s goal is to help clients identify promising companies before they become household names.

Rather than targeting early-stage startups, Goldman generally focuses on later-stage companies that have established meaningful products and revenues and clearer paths to profitability, Olson said, seeking what she called the “sweet spot” between risk and return.

The boom in investment in artificial intelligence has only intensified demand. In addition to leading model developers, Goldman is increasingly directing clients toward investments in infrastructure underpinning AI, including data centers and related projects, Olson said.

The announcement comes days after Goldman Sachs reported record quarterly revenue, with executives highlighting AI-driven activity across its investment banking, commercial and finance businesses. The results reinforced investors’ view that Goldman is positioned to capitalize on multiple facets of the AI ​​investment cycle.

The announcement also formalizes Goldman’s growing business of helping clients find liquidity for private investments.

Through its new secondary advisory group, the firm plans to expand the marketplace that allows clients to buy and sell private property while also advising clients looking to exit investments outside of Goldman.

“We said, ‘Let’s make that clear and make it very clearly defined as something we’re leaning toward,'” Olson said.