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Goldman’s AWM division is refocusing on lending and alternatives for retirement plans, notably private credit in 401(k) target-date funds, leveraging its experience with ultra-wealthy clients

August 11, 2025 //  by Finnovate

Goldman Sachs, long dominant in M&A and IPOs, is pushing to expand its smaller but faster-growing Asset & Wealth Management (AWM) division to diversify away from the cyclical swings of investment banking, which makes up about 70% of its revenue. Global AWM head Marc Nachmann sees an opportunity to gain market share in a fragmented field, focusing on ultra-high-net-worth clients ($30M+ accounts) and expanding advisor headcount, especially in Europe and Asia. A key growth lever is lending — both to existing clients and to wealthy, liquidity-constrained prospects — to deepen relationships and attract new business. Goldman is also moving into alternatives for retirement plans, notably private credit in 401(k) target-date funds, leveraging its experience with ultra-wealthy clients. This push aligns with a more favorable regulatory environment under President Trump, allowing broader access to alternatives. Additionally, the firm is integrating generative AI into AWM to improve efficiency and advisor productivity, such as portfolio monitoring and asset allocation analysis. Overall, Goldman aims to build a steadier, fee-based revenue stream while capitalizing on its leadership in high-end wealth management and alternatives.

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