Thursday, October 15, 2026

Goldman Sachs, Citi Pivot to Private Credit as Divestments Hit $25B

Goldman Sachs acquired two alternative investment firms while selling its Polish fund business, raising its dividend 12.5% as shares climbed 20.5% in six months. Citigroup exited Russia and reduced Mexican holdings while launching three private credit partnerships worth over $105B combined, following 20,000 job cuts announced in early 2024.

Goldman Sachs, Citi Pivot to Private Credit as Divestments Hit $25B
Image generated by AI for illustrative purposes. Not actual footage or photography from the reported events.

Goldman Sachs acquired Industry Ventures in January 2026 and Innovator Capital Management in December 2025, while divesting its Polish TFI unit to ING in November 2025. The bank raised its dividend 12.5% in January 2026 and 33.3% in July 2025, with stock gaining 20.5% over six months.

Citigroup sold AO Citibank, its Russian subsidiary, in February 2026 and offloaded equity stakes in Grupo Financiero Banamex the same month. The bank had announced 20,000 job cuts in January 2024 as part of restructuring efforts.

The divestments coincide with major alternative investment partnerships. Citigroup formed a $25B private credit platform with Apollo in September 2024, an $80B customized portfolio offering with BlackRock in September 2025, and an asset-based private credit partnership with Carlyle in June 2025. Combined value exceeds $105B.

JPMorgan acquired Apple's credit card program in January 2026, adding to its September 2025 takeover of General Motors' credit card program transition. The moves signal consolidation in consumer credit alongside wealth management expansion.

Private credit markets have drawn major banks seeking higher margins than traditional lending. Asset-based lending and customized portfolios allow banks to deploy capital without balance sheet constraints of regulated banking operations.

Goldman's venture capital acquisitions complement its asset management division, which manages over $2.5T. Industry Ventures specializes in secondary venture investments, while Innovator focuses on defined outcome ETFs.

Citigroup's Russia exit follows Western banks' broader retreat from the market since 2022. The Banamex stake sales represent unwinding of Mexican retail operations acquired in 2001.

The shift from traditional banking to alternative assets reflects margin pressure from low interest rate environments and regulatory capital requirements. Private credit partnerships allow banks to earn fees without holding loans on balance sheets, improving return on equity metrics tracked by investors.

Technology-enabled wealth management platforms let banks serve high-net-worth clients with lower overhead than branch networks. BlackRock's partnership gives Citigroup access to Aladdin risk management technology for customized portfolios.

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