Private equity giants Blackstone Group (BX), Carlyle Group (CG) and KKR (KKR) have recently announced the intent to bring their investing approach to retirement accounts, albeit with higher minimum investments.
Goldman's alternative investment mutual fund also comes as the bank pares its own investment in private equity and hedge funds to comply with post-financial crisis regulations.
For instance, the Volcker Rule, a crucial piece of the 2010 Dodd Frank Act, significantly limits the amount of capital the firm can put into private equity and hedge funds.
In the first quarter, Goldman significantly beat earnings estimates on $1 billion in private equity investment gains and another $1 billion in write-ups of principal debt and equity trading positions.Investors, however, appeared to discount the $2.1 billion in revenue Goldman earned from the bank's so-called "Investing & Lending" unit, amid uncertainty about the sustainability of such earnings. The $2.1 billion figure accounted for about 21% of Goldman's first quarter revenue. Goldman's Investing & Lending unit holds $57.2 billion in assets, according to the firm's 2012 10-K filing with the Securities and Exchange Commission. -- Written by Antoine Gara in New York Follow @AntoineGara
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV