Julian Salisbury, Chief Investment Officer at Goldman Sachs Wealth and Wealth Administration, said in an interview with Reuters that the wealth management arm will significantly reduce the $59 billion in alternative investments that weigh on the bank’s balance sheet.
Explaining that the bank plans to divest itself and replace some of these funds in its balance sheet with foreign capital in the next few years, Salisbury said, “I would expect to see a significant decrease from current levels. It will not be zero, because personal reconciliations on the balance sheet will continue to be invested in funds.” said.
Salisbury said that Goldman Sachs will give more details about its asset plan on its investor day on February 28, and that alternative assets, traditional investments such as stocks and bonds, may include private equity or real estate, on the contrary.
Goldman had a tough fourth quarter, missing Wall Street profit targets by a wide margin. Like other banks, Goldman announced that it would lay off more than 3,000 employees in its biggest layoff decision since the 2008 financial crisis.