According to a Monday report by Bloomberg News, Goldman Sachs is negotiating a $10 billion investment mandate from the Kuwait Investment Authority (KIA), Kuwait’s sovereign wealth fund, for its asset management division.
Key Details of the Talks
The funds, which would be allocated over several years and across various funds, are primarily focused on Goldman’s private equity, credit, and infrastructure investments. Both Goldman Sachs, which declined comment, and KIA, which did not immediately respond, are involved in the discussions.
Goldman’s Strategy and Expansion
This potential mandate aligns with Goldman Sachs’ strategy to accelerate its shift toward private markets and alternative-asset businesses, aiming to diversify its revenue away from its traditional reliance on trading and investment banking. CEO David Solomon recently stated the firm plans to raise $100 billion in alternative assets this year, exceeding earlier goals, building on the $374 billion it already supervises in this area. Furthermore, these talks follow Goldman’s recent expansion into the Gulf region, including the opening of a new office in oil-rich Kuwait this month.
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