Goldman targets £90bn surge at fast-growing investment group

The group, which is part of Goldman Sachs Asset Management, was brought together in 2008 and has quadrupled in size from £13 billion in 2012.

Kane Brenan, who was made a partner at Goldman Sachs in 2014, told FN that adding around £90 billion in assets over the next four years will be feasible, as he predicts investors will continue to seek out asset diversification in the low-return environment.

The unit is home to roughly £40 billion in fiduciary-managed assets, £10 billion in partially outsourced assets and another £10 billion in multi-asset strategies. It has 120 employees globally and Brenan is based in New York.

Brenan, who said the group has been GSAM’s fastest-growing in recent years, explained: “[For] the two big trends, outsourcing, as well as individual investors looking for outcome-based-solutions, there will continue to be terrific growth, the pie is still expanding.

“Four years from now do you go from £60 billion to £150 billion? Maybe, [it will be] something like that.”

Investment solutions – effectively bespoke investment strategies that cut across asset classes and styles – accounted for $ 9 trillion in assets under management in 2014, 13% of the global total, according to Boston Consulting Group. That was up from $ 2 trillion, or 6%, in 2003.

GSAM’s fellow asset management giants BlackRock, JP Morgan Asset Management and Aviva Investors are among those who have also looked to hoover up solutions-focused assets.

Last month, GSAM’s global portfolio solutions group was among eight fund managers that was handed a mandate by the €8 billion Ireland Strategic Investment Fund. Brenan said the unit was also handed a $ 7 billion fiduciary mandate by a US pension last month, but he expects that the fastest pace of growth for the division will come from Asian investors.

He added: “The world has got more complex, 10 or 20 years ago equities or bonds would be it [for investors]. People have come up with more complex assets classes. High yield bank loans didn’t exist as an asset class until 1994 and hedge funds in earnest till sometime around then.

“The other big trend is incredible low interest rates – [fixed income assets] are not yielding what you need.”

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