Alternatives

Optimizing a Private Asset Allocation

The Challenge

The Client

A client with significant exposure to public market investments and smaller historical exposure to private markets.

The Objective

Construct a private asset allocation that potentially adds alpha and helps diversify the portfolio.

Our Assignment
  • Create a detailed analysis of existing balance sheet holdings, leveraging our expertise across insurance and alternatives.
  • Provide education on the full suite of our alternative strategies and how they may complement the insurance clients’ needs and risk tolerance.
  • Develop multi-strategy proposal incorporating economic efficiencies of scale.
Our Solution

A Strategic Partnership

We developed a $1bn Strategic Partnership focusing on both direct and open architecture Private Equity strategies deployed over a 5-year commitment period into flagship funds.

References to the term “partnership” are not intended to connote a type of legal organizational structure between Goldman Sachs Asset Management and a firm. Diversification does not protect an investor from market risk and does not ensure a profit.

The Outcome

Optimizing Alternative Allocations

The partnership was tailored to the needs and goals of the client, with open discussions on sizing, strategy type, direct versus 3rd party manager offerings and the timing of deployment. 

Following several years of discussions on strategic asset allocation and insurance capital analysis, we had developed a deep understanding of the client’s portfolio, investment approach, and organization. Our focus on delivering the Firm, rather than just a product, provided distinction in a competitive process. 

Our solution was diversified across a range of private market investments including buyout, growth, GP stakes, secondaries and co-investments.

As we deploy capital in the coming years, our ongoing portfolio analysis may point to additional alternative asset classes that could be incorporated into the scope of the partnership as their balance sheet expands.

The cited case studies represent examples of how we have partnered with various institutional clients on a broad range of services and offerings. The experiences outlined in the case studies may not be representative of the experience of other clients. The case studies have not been selected based on portfolio performance and are not indicative of future performance or success. This is not a testimonial for Goldman Sachs Asset Management’s advisory services.

Start the Conversation
Contact Goldman Sachs Asset Management for a detailed discussion of your needs.
card-poster