Goldman Sachs Advisor Solutions (GSAS) recently launched a lending feature that allows eligible clients of RIAs to obtain loans using specific alternative investments as collateral. This innovative feature addresses the growing demand for liquidity and flexibility among sophisticated investors, particularly in a market where RIAs are expected to significantly increase their alternative investment allocations by approximately 31% over the next two years.
A significant move towards private credit is evident, with over 60% of advisors at RIAs planning to increase their investments in this area, as found by Crystal Capital Partners. Recognizing this trend, Goldman made strategic leadership changes in its asset management's private credit unit to expand the business significantly.
Jeremy Eisenstein, Managing Director at GSAS, emphasized that offering access to institutional-grade investment solutions greatly enhances the client experience for independent advisors. This effort aligns with Goldman Sachs Bank USA. It is part of the firm's One GS RIA Strategy, reflecting Goldman's commitment to providing innovative solutions that meet the evolving needs of the investment landscape.
Unlike traditional loans against publicly traded securities offered by custodians, GSAS's new feature introduces the flexibility to borrow against select alternative investments. This initiative demonstrates Goldman Sachs's dedication to adapting to the changing investment scene and supporting RIAs in managing complex financial situations more effectively, offering clients both choice and flexibility.
Our Opinion:
This new lending feature, allowing clients to borrow against alternative investment positions, is a smart strategy to cater to the growing demand for alternative investments among sophisticated investors. This move positions Goldman Sachs as a leader in the alternative finance lending space.
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