Goldman's Nachmann Says Public-Private Markets Boundary Softening

In Brief:

Marc Nachmann, head of Goldman Sachs' Asset and Wealth Management division, discusses investment strategies amid global volatility in this Bloomberg interview from Australia. Speaking during his Asia-Pacific tour, Nachmann emphasizes the growing appeal of private markets despite recent public market turbulence.

He explains that institutional and high-net-worth investors are increasing their allocation to private assets due to their long-term outperformance compared to public markets. Nachmann also highlights an emerging trend where the distinction between public and private markets is becoming increasingly blurred.

Big Picture Drivers:

• Market uncertainty: Long-term perspective preferred over reacting to daily volatility

• Geographic diversification: Opportunities across all regions with unique investment landscapes

• Public-private convergence: Traditional boundaries becoming less defined

• Regulatory adaptation: Authorities worldwide adjusting to private market growth

Key Topics Covered:

• Private markets appeal: Historical outperformance versus public counterparts

• Growth areas: Private credit, secondaries, and private equity investments

• Australian opportunity: Building local business while facilitating global investment

• Pension management: Outsourcing trend benefiting large asset managers

Key Insights:

• Private longevity: More companies staying private longer creates investment demand

• Institutional shift: Traditional investors increasingly allocating to private assets

• Market evolution: Distinction between public and private markets fading

• Crisis opportunity: Market uncertainty accelerates pension outsourcing

Memorable Quotes:

• "The boundaries between the public and private markets will continue to become softer and we'll see more of a continuum between the two markets." - Marc Nachmann

• "Private equity has outperformed the public equity markets... private credit has outperformed public credit." - Marc Nachmann

The Wrap:

As traditional market boundaries erode, Goldman Sachs is positioning itself at the forefront of the private investment evolution. Nachmann identifies infrastructure (driven by digitalization and decarbonization) as a key theme while acknowledging cyclical challenges.