Goldman revamps private credit leadership

investmentnews.com:

Goldman Sachs Group Inc.’s asset management arm is reshuffling senior executives in its $110 billion private credit unit as it seeks to double the size of the business in the medium term, according to its global head of asset and wealth management.

“We think it’s the biggest opportunity set across the alternative space,” said Marc Nachmann. 

The revamp will see Greg Olafson become global head of private credit from his current role as co-president of alternatives, according to a memo seen by Bloomberg. Olafson will now spend all of his time on private credit — an area of expertise for him — as the bank focuses more resources and attention on the sector. 

James Reynolds will become the bank’s global head of direct lending — the biggest portion of private credit, typically involving debt financing companies that are below investment grade, the memo said. Kevin Sterling will become global head for investment-grade private credit and asset finance. Reynolds and Sterling are currently co-heads of private credit. 

Goldman has long led Wall Street rivals like JPMorgan Chase & Co, Barclays and Citigroup Inc. in the burgeoning $1.6 trillion market and is rare in that it maintains a sizable private credit division that dates back to before the 2008 financial crisis. Its strategy has been to house the franchise within its asset-management arm, raising third-party capital rather than deploying its own balance sheet. 

The latest changes come as Goldman seeks to retain that advantage — and as its rivals scramble to respond to the rise of a new asset class that competes directly with their leveraged finance business. 

Goldman was one of the lenders to the record-setting private loan backing the buyout of Adevinta, where the private