Goldman Sachs is looking to shed some of its holdings in alternative investments following the negative impact it had on earnings, according to a report in Reuters.
Julian Salisbury, chief investment officer of asset and wealth management at the firm told Reuters that it plans to reduce its positions over the next few years.
"I would expect to see a meaningful decline from the current levels," Salisbury said.
"It is not going to zero because we will continue to invest in and alongside funds, as opposed to individual deals on the balance sheet."
The firm's alternative assets include private equity and real estate, and make up $59bn of its assets under management, down from $68bn at the end of 2021.
"Obviously, the environment for exiting assets was much slower in the back half of the year, which meant we were able to realise less gains on the portfolio compared to 2021," Salisbury said.
The CIO said he expects to see "a faster decline in the legacy balance sheet investments" if the environment for asset sales improves.
Goldman Sachs is expected to provide further details on the plan during an investor day on 28 February.
In January, Goldman Sachs reported that its profits dropped two-thirds in the fourth quarter, its fifth straight quarter of falling profits. This included $660m in losses from stock market investments held in its asset management business.
The company is also looking to cut more than 3,000 jobs, slash bonuses and launch a review on its spending.
