Goldman Sachs Group Inc is ramping up its private-equity investments and going after smaller, high-growth targets as part of a broad plan to offset recent trading declines, three people familiar with the effort told Reuters.
Goldman's investment bank, which typically focuses on advising large companies on mergers and raising capital, is now looking to use Goldman's own funds to finance a handful of small, promising companies in the near-term, the people said.
The team scouting for deals is led by senior investment banker Kathy Elsesser, who earlier this year took on the project in addition to her role as global chair of consumer, retail and healthcare investment banking.
The goal is to repeat Goldman's past success with early-stage investments in tech companies such as Uber Technologies Inc. The latest effort, however, would target industries outside of Silicon Valley, said the people, who declined to be named because the strategy they were discussing was not yet public.
It is one of several initiatives Goldman has launched to add $5 billion to annual revenue after a slump in bond trading. Among those are efforts to lend more, come up with creative deals to pitch to big clients, and convince more corporations and investors to trade with Goldman Sachs.