The Goldman Sachs Group, Inc.
The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through three segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. The Global Banking & Markets segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; equity and debt underwriting of public offerings and private placements; relationship lending and acquisition financing; secured lending through structured credit and asset-backed lending, such as warehouse, residential and commercial mortgage, corporate, consumer, auto, and student loans; financing through securities purchased under agreements to resell; and commodity financing through structured transactions. This segment also offers client execution activities for cash and derivative instruments; credit and interest rate products; and provision of mortgages, currencies, commodities, and equities related products. Its Asset & Wealth Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, commodities, and asset allocation strategies; and provides customized investment advisory solutions, wealth advisory services, personalized financial planning, and private banking services, as well as invests in corporate equity, credit, real estate, and infrastructure assets. The Platform Solutions segment offers credit cards; and transaction banking and other services, such as deposit-taking, payment solutions, and other cash management services for corporate and institutional clients. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.
What does it do?
Goldman Sachs is one of the most powerful banks in the world — think of it as the financial advisor, dealmaker, and money manager for the biggest companies, governments, and wealthy individuals on the planet. When a massive company like Microsoft wants to buy another company, Goldman might be the firm they call to help structure and negotiate that deal. Goldman also trades stocks, bonds, and other financial assets on behalf of clients, and manages over $3 trillion in investments for people and institutions. It's less of a bank where you deposit your paycheck and more of a behind-the-scenes engine powering the world's biggest financial moves.
Goldman Sachs is essentially a barometer for global financial health — when deal-making, IPOs (companies going public on the stock market), and trading activity are booming, Goldman wins big. Right now, investors are watching closely because a recovering M&A (mergers and acquisitions) market after years of slowdown could unlock a major earnings surge for Goldman. Its sheer scale and elite reputation mean it consistently captures a disproportionate share of the most lucrative deals worldwide.
How does it make money?
Goldman makes money through three main buckets. Its largest segment, Global Banking & Markets, earns fees advising on mergers and acquisitions and helping companies raise money, plus revenue from trading — this drove the bulk of its $58.3 billion in 2024 revenue, up from $53.5 billion the prior year. Its Asset & Wealth Management segment charges fees to manage money for ultra-high-net-worth individuals and institutions, a steadier, recurring income stream. A smaller segment, Platform Solutions, includes consumer-facing financial products, though Goldman has been scaling this back after it proved costly.
Why do investors care?
The core growth story is a revival in Wall Street activity — after a deep freeze in dealmaking from 2022 to 2023 driven by high interest rates, the pipeline of mergers, IPOs, and corporate fundraising is thawing. Goldman posted $16.3 billion in net profit in its latest year, a strong rebound that signals the cycle is turning. For the thesis to fully play out, interest rates need to keep easing to unlock more deals, and CEO David Solomon's strategy of doubling down on investment banking and wealth management — while retreating from the failed consumer banking experiment — needs to keep delivering. If capital markets stay active and Goldman captures its usual outsized share, earnings growth could be substantial.
Deep Dive
MemberA full investor briefing on The Goldman Sachs Group, Inc. — history, leadership, risks, and outlook.