Can Goldman's Expansion in Private Equity Credit Drive Growth?

Core Insights - Goldman Sachs is aggressively expanding its private equity and alternatives business through acquisitions and platform enhancements, which is expected to support long-term growth [1] Expansion and Acquisitions - In October 2025, Goldman Sachs agreed to acquire Industry Ventures, a leading venture capital platform, to strengthen its position in private markets and enhance access to high-growth technology companies globally [2] - In September 2025, Goldman partnered with T. Rowe Price in a $1 billion deal to co-develop retirement and wealth products, later expanding the partnership to include alternative investment offerings for wealthy clients and retirement savers [3] International Growth and Asset Management - Goldman is expanding its private equity credit services internationally, focusing on Europe, the U.K., and Asia, and aims to increase distribution of alternative investments to third-party wealth platforms, targeting $8 billion in client assets for 2025, up from $5 billion in 2024 [4] - The company expects to provide clients with differentiated sourcing and investing capabilities across private credit and private equity opportunities, anticipating high-single-digit annual growth in private banking and lending revenues [5] Financial Performance and Valuation - Goldman Sachs shares have gained 42.8% year to date, outperforming the industry's growth of 36.5% [8] - The company trades at a forward price-to-earnings (P/E) ratio of 14.95X, below the industry average of 15.07X [12] - The Zacks Consensus Estimate for Goldman Sachs's earnings implies year-over-year growth of 20.7% for 2025 and 12.6% for 2026, with upward revisions in estimates over the past week [14]