Goldman Earns Windfall Profits Thanks to Clients' Early Investments in SpaceX - Bloomberg Línea
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Bloomberg - Goldman Sachs Group Inc. bankers earned huge fees managing SpaceX's spectacular June IPO, but the seeds of an even larger gain tied to that listing had been sown years earlier. The bank had helped arrange investments by wealthy clients in Elon Musk's company more than five years ago, when SpaceX was valued at tens of billions of dollars. When the aerospace company went public with a valuation of US$1.77 trillion, Goldman clients who sold shares reaped a huge windfall profit and provided the bank with hundreds of millions of dollars in incentive fees, according to people familiar with the matter. Its partners were able to invest alongside clients, meaning some current and former senior executives could also have made significant gains, said the sources, who asked not to be identified as the information is private. A bank spokesperson declined to comment.The Goldman's US$4 trillion asset and wealth management division is in an enviable position, as it guarantees its clients exceptional access to investments in companies before they go public. The best investment opportunities, which can often entail high risk, highlight the potential for returns offered by investing at an early stage, before a company opens up to public markets.The unit that manages alternative investments for wealthy individuals, currently led by Kristin Olson, also helped clients participate in...
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