Jim Esposito’s Post

‘Tougher regulation following the financial crisis meant banks retreated from lending to small and medium-sized businesses across the US and Europe. Barings was among the biggest beneficiaries of this trend, stepping in to fill the gap. Private credit assets under management soared as investors were attracted by high single-digit returns during a long period of low interest rates around the world. Large private equity groups such as Blackstone and Apollo were drawn into the corporate lending market, expanding well beyond their leveraged buyout roots, while other more specialist groups including HPS, Ares and Barings were able to create sizeable businesses, partly by helping finance private equity buyouts. In recent years, banks have sought to re-establish their presence in the market, with lenders including Barclays and Wells Fargo setting up partnerships with asset managers to do so.’ https://lnkd.in/gGvZc5zg

Goldman Sachs has announced this week that they aim to expand their private credit portfolio up to $300 billion in five years, from the current $130 billion, following a similar announcement from Morgan Stanley earlier in 2024. Private Credit is an alternative asset that has received increased focus in recent years, as investors look to diversify their investment portfolios and seek opportunities for strong fixed returns amidst volatility and uncertainty in other markets. We at P1 Capital believe that the right Private Credit offerings can provide investors with a robust asset class with which to grow their wealth. https://lnkd.in/e74btxkS

An interesting article our partners at P1 Capital picked up on which highlights continued interest in the Private Credit market. Get in touch to learn more about our new UK Private Credit Opportunity. #privatecredit #ukpropertyinvestment #capitalraising #propertydevelopment #investment #propertydevelopmentfinance #commercialfinance

📢 I did a recent LI post stating that UHNW investors typically place the majority of their money in private equity, credit or real estate. ✅ Myself, I like the private credit space for the majority of my investments and the post below 👇by P1 Capital reinforces this. ✅ Goldman Sachs will increase their private credit portfolio by almost 300% in the next 5 years alone, following on the back of a similar increase by their great rivals Morgan Stanley. ✅ If you want to enquire what investing in private credit looks like, please DM myself for an informal overview. #privatecredit #alternativeinvestments #alternativeassets

As has been widely reported on Bloomberg, CNBC and the Wall Street Journal this morning Goldman Sachs has amassed a war chest of more than $20B for private credit investments, the company said on Wednesday, underscoring the surge of interest in the asset class. The alternatives part of its asset management arm announced the final close of West Street Loan Partners V, its latest in a series of large-cap senior direct lending vehicles, at $13.1B total capital. In addition, Goldman Sachs (GS) Alternatives closed on more than $7B in large-cap senior direct lending management accounts and $550M of co-investment vehicles. This will be fascinating to watch in the future and underscores the interest in the rapidly growing private credit lending market today.

**This story was first reported by Citywire RIA on Friday 8/18 When Goldman Sachs announced this deal in 2019, I thought their intent was to become "a platform for RIAs", which for them made a lot of sense. It now seems like they actually thought they could "become the RIA" 🤦 "Advice" does not fits well inside Banks and large financial institutions. There is no independence, and conflicts of interest are simply everywhere. When banks and other financial institutions start understanding this and executing against it, maybe someone will build a model/platform that challenges the incumbents (Charles Schwab, LPL Financial, Fidelity for Wealth Managers, BNY Mellon | Pershing etc). Meanwhile, like Freddy Mercury used to say: another one bites the dust #wealthmanagement #ria #financialadvisors

What would be very useful and cool: load all these up into ChatGPT and find out where the commonalities and differences are in these outlooks. Perfect application of AI. Does anyone want to do it and share it with the group? #ai #chatgpt #forecasting

𝟮𝟬𝟮𝟰 𝗖𝗼𝗺𝗽 𝗖𝗵𝗮𝗻𝗴𝗲𝘀: Wells Fargo's independent advisor arm, FiNet, is implementing a platform fee increase for larger advisors, eliminating the $500 million asset cap. While this move may seem counterintuitive as Wells Fargo aims to grow its independent advisor business, the fee adjustment, less than one basis point annually, is designed to provide better support to advisors with assets exceeding the cap. It's unclear how many FiNet advisors will be affected. Winthrop & Co. 💡 𝗜𝗖𝗬𝗠𝗜: Prior this year, Morgan Stanley said they'll be implementing a 10% increase in production hurdles starting in 2024. #WealthManagement #FinancialAdvisor #Wirehouse

Goldman Sachs Asset Management, a unit of Goldman Sachs Group, aims to expand its #privatecredit portfolio to $300 billion in 5 years from the current $130 billion Goldman Sachs's #privatecredit aspirations are larger than those of its peers, including Morgan Stanley which aims to double its private credit portfolio to $50 billion in the medium term as it gathers funds from large investors. JPMorgan Chase & Co. has earmarked at least $10 billion for #privatecredit, and Wells Fargo and Citi have set up partnerships to get deeper into the market. https://lnkd.in/dRPbWdTa #banks #bankingsector #bankingindustry #bank #banking #bankingandfinance #finserv #lending #lender #lendingsolutions #lenders #lendingmetrics #creditmanagement #credit #creditrisk #creditriskmanagement #riskmanagement

Goldman Sachs entering the competitive custodial space is going to be a disruptor especially for advisors focused on high net worth clients (HNW) or wirehouse breakaway advisors. #wealthmanagement #financialadvisor #financialplanning #goldmansachs #bridgemarkstrategies #custodians #wirehouse #ria