Goldman Sachs is strategically positioning itself to capitalize on the booming infrastructure investment market by expanding its alternatives capital formation group. This move reflects the bank’s commitment to a sector that has seen increasing demand due to various economic and technological trends. To bolster its efforts, Goldman Sachs has recently brought in Sydney McConathy and Tani Burge, two seasoned professionals with extensive experience in infrastructure investments.
Sydney McConathy has been appointed as a product specialist lead and is transitioning from BlackRock, where she was instrumental in overseeing product strategy and investor relations for the infrastructure equity platform. Her new role at Goldman Sachs, based in Boston, will focus on driving capital raising initiatives and strengthening client relationships within the firm’s infrastructure strategy. McConathy’s expertise is expected to play a pivotal role in expanding Goldman Sachs’ infrastructure investments, leveraging her background in a competitive market.
Tani Burge, who has joined Goldman Sachs as a product specialist based in London, brings a wealth of experience from her previous role at Astatine Investment Partners. At Astatine, she led client and investor solutions with a focus on infrastructure private equity. In her new role at Goldman Sachs, Burge will support capital raising and investor relations across various infrastructure products, including draw-down and semi-liquid options. Her experience will be crucial in navigating the competitive landscape and enhancing Goldman Sachs’ ability to attract and manage infrastructure investments.
Goldman Sachs established its alternatives capital formation group in January, with the aim of centralizing efforts related to fund-raising, investor relations, and product development within the alternatives sector. This group now consists of approximately 150 professionals dedicated to these tasks. The addition of McConathy and Burge reflects the firm’s commitment to expanding its infrastructure investment capabilities in response to growing market opportunities.
The infrastructure investment sector is increasingly attractive due to several factors. The expansion of artificial intelligence technologies, the push for renewable energy, and substantial government spending on infrastructure repair and development have all contributed to heightened demand for infrastructure assets. Investors are actively seeking opportunities in this sector to gain a competitive advantage, and Goldman Sachs is positioning itself to meet this demand.
Recent high-profile transactions in the infrastructure sector highlight the intense competition and investment interest. For instance, BlackRock’s $12.5 billion acquisition of Global Infrastructure Partners, which is expected to close in the third quarter, will elevate BlackRock to the position of the world’s second-largest infrastructure investor, behind only Brookfield Asset Management. This deal underscores the significant investment opportunities and competition within the infrastructure market.
Kenneth Leon of CFRA Research noted that alternative asset managers, with approximately $340 billion in available capital, are eager to invest in infrastructure assets. This substantial “dry powder” creates a sense of urgency among managers to deploy funds, driving increased activity in the sector.
Goldman Sachs’ recent initiatives include raising $4 billion for a new infrastructure fund and setting an ambitious target to exceed $50 billion in alternatives fund-raising this year. David Solomon, the bank’s chief executive, highlighted this goal during a recent earnings call, demonstrating the firm’s strong focus on expanding its infrastructure investment capabilities.
In summary, Goldman Sachs’ strategic hires and increased focus on infrastructure investments underscore its dedication to capitalizing on a lucrative and expanding segment of the private markets. By enhancing its team with experienced professionals and setting ambitious fund-raising targets, the bank aims to strengthen its position in the infrastructure sector and drive significant growth in its investment activities. As demand for infrastructure assets continues to rise, Goldman Sachs is well-positioned to leverage these opportunities and achieve substantial success in this competitive market.