Goldman Sachs' Bold APAC Restructuring: A Play for Tech Dominance and Cross-Border Deals

Goldman Sachs' recent structural reorganization of its Asia-Pacific (APAC) investment banking operations marks a bold bet on the region's tech-driven growth, cross-border dealmaking, and emerging market leadership. By merging three regional divisions into a unified platform and elevating figures like Raghav Maliah—a tech-savvy co-head of Asia ex-Japan M&A—the firm is positioning itself to dominate a $2.3 trillion M&A market that's increasingly powered by Asia's tech boom. Here's why investors should take note.

The Structural Shift: Why It Matters

In early 2025, Goldman Sachs restructured its APAC investment banking units, combining teams previously split between Japan, Australia/New Zealand, and the rest of Asia under veteran banker Iain Drayton. This move eliminates operational silos, accelerates decision-making, and creates a single, integrated platform to tackle cross-border deals—a critical advantage as Asian firms expand globally and multinational corporations seek regional footholds.

The results are immediate: in Q1 2025, Goldman surged to first place in Asia-Pacific equity capital markets (ECM), advising on $12 billion in deals, including BYD's $5.6 billion Hong Kong follow-on and Xiaomi's $5.5 billion placement. This represents a 133% year-over-year surge in APAC ECM revenue, far outpacing rivals like JPMorgan and Morgan Stanley.

Raghav Maliah's Tech Play: The Heart of the Strategy

Central to Goldman's reorganization is Raghav Maliah, a co-head of Asia ex-Japan M&A and a key architect of its tech focus. Based in Hong Kong, Maliah's expertise lies in the Technology, Media, and Telecom (TMT) sectors, where he's spearheading deals in cloud computing, semiconductors, and infrastructure. These sectors now account for 40% of Asia's M&A activity, driven by surging demand for renewable energy projects, offshore wind, and tech-driven consolidations.

Maliah's leadership aligns with Goldman's broader bet on Asia's tech dominance. The region's M&A volume hit a record $1.2 trillion in 2023, with 2025 on track to surpass that. High-profile deals like Alphabet's $30 billion acquisition of cybersecurity firm Wiz Inc. and TSMC's semiconductor expansions highlight the sector's momentum. Goldman is also capitalizing on intra-Asia cross-border deals, with Japan and India emerging as key hubs for corporate restructurings and private equity activity.

Why Investors Should Care: The Growth Tailwinds

The restructuring isn't just about deals—it's about profitability. By streamlining operations, Goldman aims to boost APAC operating margins to 35% by 2026, up from 28% in 2023. This efficiency gains are critical as the firm shifts focus to high-margin sectors like tech and infrastructure, which are less exposed to China's economic slowdown.

Investment Implications: Where to Play

Goldman's strategic moves mirror compelling opportunities for investors:
1. Tech Growth: Follow the firm's focus on TMT sectors. ETFs like the iShares MSCI Asia Tech ETF (AATE) offer broad exposure to the region's tech leaders, including TSMC (TSM) and Samsung.
2. Cross-Border Plays: Invest in firms benefiting from supply chain diversification and geopolitical realignments. SoftBank (SFTBY), a frequent acquirer in tech and logistics, is a prime example.
3. Infrastructure Boom: Renewable energy and offshore wind projects, now a $600 billion opportunity by 2030, can be accessed via ETFs like the Invesco Solar ETF (TAN) or direct investments in firms like NextEra Energy (NEE).

Risks and Mitigants

While geopolitical tensions and regulatory hurdles loom, Goldman's diversified APAC strategy mitigates risks. By tilting toward high-growth markets like India (projected 6.5% GDP growth in 2025) and Japan's corporate governance reforms, the firm reduces reliance on volatile U.S. markets.

Conclusion: A Long-Term Bet on Asia's Rise

Goldman Sachs' reorganization isn't just a structural tweak—it's a decade-long play on Asia's economic ascendancy. With Maliah's tech expertise steering high-value deals and ECM revenue surging, the firm is well-positioned to capture a rising tide of cross-border activity. For investors, this signals a chance to profit from the region's growth through sectors Goldman is already dominating.

Consider Goldman's stock (GS) itself: trading at a forward P/E of 12x (below peers like Morgan Stanley at 14x) and offering a 2.8% dividend yield, it's undervalued relative to its APAC growth trajectory. Pair this with targeted ETFs and tech stocks, and you've got a portfolio primed to ride Asia's next wave of capital markets expansion.

The restructuring's success is already evident—now it's time to act.