Goldman Sachs looks to expand private equity credit lines as dealmaking picks up

NEW YORK, May 17 (Reuters) – U.S. investment bank Goldman Sachs (GS.N), opens new tab is muscling into the lending market for private equity and asset managers, planning an overseas expansion as it helps fill a void left by turmoil at regional banks and the sale of Credit Suisse.

The Wall Street bank and rivals JPMorgan Chase (JPM.N), opens new tab and PNC Financial Services (PNC.N), opens new tab are stepping up in this $800 billion to $1 trillion market as private equity deal activity is expected to pick up due to record-high fund-raising. Such loans are asset-based and short-term, lowering their risk.

Goldman last year bought a portfolio of loan facilities valued at $15 billion from the failed Signature Bank during an auction by the Federal Deposit Insurance Corp (FDIC).

“The focus is to lend to large alternate asset managers, private equity sponsors,” Maheshwar Saireddy, Goldman Sachs’ global head of mortgage and structured products, told Reuters.

“One of the big initiatives we’ve been working on is to create more stable revenue in our global banking and markets businesses,” he said.

Source: REUTER