Goldman Sachs forms new capital solutions group

The new group consolidates resources from multiple units

Goldman Sachs forms new capital solutions group

Goldman Sachs Group Inc. has restructured its banking and markets division to form a new capital solutions group designed to enhance its financing offerings for clients.

The new group consolidates resources from multiple units, including the financing division, financial-sponsors coverage in investment banking, and private equity firm coverage from its fixed-income and equities trading groups.

The capital solutions group will be led by Pete Lyon and Mahesh Saireddy. Lyon currently heads the financial institutions group and the financial and strategic investors group, while Saireddy serves as the global head of mortgages and structured products. Both executives will also join the bank’s management committee.

According to David Solomon, chairman and CEO of Goldman Sachs, the firm’s strategy aligns with key trends in the financial sector.

“Our strategy and core franchise strengths the position of Goldman Sachs to operate at the fulcrum of one of the most important structural trends taking place in finance: the emergence and growth of private credit and other asset classes that can be privately deployed,” he said.

The formation of this group comes as private credit has become an increasingly competitive space. Goldman Sachs aims to strengthen its position by refining its offerings to meet growing client demand in this area.

In addition to Lyon and Saireddy’s promotions, Vivek Bantwal, global head of the financing group, will transition to the asset and wealth management division. He will work alongside James Reynolds, global head of direct lending, to co-lead the global private credit team.

How do you think this new capital solutions group will impact the industry? Share your thoughts in the comments.