Goldman's Expansion in Private Credit: Next Growth Engine?

The Goldman Sachs Group, Inc. GS is making a more decisive strategic pivot, with private credit emerging as a key pillar of its long-term growth story. The company is aggressively expanding its private equity and alternatives platform through acquisitions, platform enhancements and the integration of new investment capabilities, all of which should strengthen its growth prospects over time.

Goldman aims to significantly scale its private credit business by increasing lending to private equity firms and asset managers, expanding across Europe, the U.K. and Asia, and growing its private credit portfolio to $300 billion by 2029.

In sync with this, in January 2026, Goldman acquired Industry Ventures, a leading venture capital platform that invests across all stages of the venture capital lifecycle. The acquisition underscores Goldman’s intent to strengthen its position in private markets and expand access to high-growth technology companies for clients globally.

In September 2025, GS partnered with T. Rowe Price in a $1-billion deal to co-develop retirement and wealth products. Later, the firms expanded the partnership to roll out alternative investment offerings for wealthy clients in 2025 and retirement savers in 2026. In January 2025, the company launched initiatives to grow private credit and other asset classes, including forming the Capital Solutions Group and expanding its alternatives team.

While concerns about private credit intensified recently due to weak underwriting standards, lack of transparency and rising borrower leverage, Goldman appears well-positioned to navigate near-term challenges. GS’s ongoing expansion will enhance its ability to offer clients differentiated sourcing and investment opportunities across private credit and private equity (PE). Management also expects private banking and lending revenues to see a high-single-digit annual pace over time.

Private Credit Expansion Efforts By Other Finance Firms

Citigroup, Inc. C is broadening its presence in the lucrative private lending business through collaborations. In sync with this, in September 2025, Citigroup launched an $80-billion customized portfolio offering with BlackRock Inc., providing clients with tailored exposure across public and private markets. In June 2025, the company announced a partnership with Carlyle Group to expand asset-based private credit opportunities in the fintech specialty lending space.

In September 2024, Citigroup and Apollo Global Management APO inked a deal for a subsidiary of Citigroup and certain affiliates of Apollo Global Management to establish a revolutionary $25-billion private credit, direct lending program. The program will initially focus on North America, potentially expanding to additional geographies. Through the program, Apollo Global Management's scalable, substantial capital base will be combined with Citigroup's broad banking client reach, origination and capital market capabilities.

Goldman’s Price Performance, Valuation & Estimates

GS shares have gained 41.8% in the past year compared with the industry’s growth of 22.7%.

Price Performance

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From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 13.5X, above the industry’s average of 12.6X.

Price-to-Earnings F12M

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The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings implies year-over-year rallies of 10.5% and 10.6%, respectively. Estimates for both years have been revised upward over the past 30 days.

Estimate Revision Trend

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Goldman currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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