Goldman Sachs banks on alternative assets

Goldman Sachs is pinning its hopes for a revival on its newly merged asset and wealth management division. Goldman executives said they “see a path” to generating a quarter of profits from the division by the end of 2025. AWM could contribute $4bn to $5bn in pretax earnings by then, more than three times the $1.3bn generated by the unit in 2022. The move comes as Goldman retreats from plans to become a digital retail bank. Bank leaders said AWM is hitting targets ahead of schedule and building up their client offerings of alternatives, including real estate and infrastructure. While Morgan Stanley is the obvious template for Goldman, the unit, if successful, could increasingly garner comparisons to Blackstone. The FT (£)and The FT (£)