Goldman Sachs Profits from Early SpaceX Bets
Article excerpt
Goldman Sachs Group Inc. bankers earned huge fees managing SpaceX's successful public offering in June, but the seeds of an even larger gain tied to the IPO had been sown years earlier. More than five years ago, when SpaceX was worth tens of billions of dollars, the bank helped manage wealthy clients' investments in Elon Musk's company. When the aerospace company went public with a valuation of US$1.77 trillion, Goldman clients who sold shares reaped huge windfalls and brought hundreds of millions of dollars in fees to the bank, according to sources close to the matter.According to the sources, who asked not to be identified citing private information, its partners were able to invest alongside clients, meaning some senior executives, both current and former, could also have reaped significant gains. A bank spokesperson declined to comment.Goldman Sachs's asset and wealth management division, with US$4 trillion in assets under management, enjoys a privileged position, offering clients exceptional access to investments in companies before they go public. The best options, which often carry high risk, demonstrate the potential for returns from investing in early stages, before a company opens up to public markets.The unit dedicated to managing alternative investments for wealthy individuals, now led by Kristin Olson, also helped clients participate in earlier investment rounds...
Keep reading with a free account
The rest of this article, and every signal for Goldman Sachs, is in your free account.
Extracted from this sentence
Goldman Sachs bankers, belonging to a separate division of the firm, received around US$100 million as lead advisors on the SpaceX IPO.
