Goldman Sachs Group, Inc. (GS.US) CEO: Mergers and acquisitions recovery helped exceed return target, asset management department aiming for a return rate of 19%

Goldman Sachs Group, Inc. CEO David Solomon has pointed out that the recovery of M&A transactions, as well as the growth of wealth management and alternative investment businesses, will help the company exceed its return targets. Solomon wrote in a letter to shareholders on Friday, "With changes in the regulatory environment, boards and CEOs are more likely to execute strategic transactions to increase scale or enhance competitive positioning." He also added that executives are taking a "more proactive" approach to transactions. Goldman Sachs Group, Inc. stated, "We are confident in achieving a return target of around 15% throughout the economic cycle, and exceeding these targets in the short term." The letter also mentioned that Goldman Sachs Group, Inc. plans to achieve a return rate of 17% to 19% in its asset and wealth management department in the next three to five years. The letter points out that Goldman Sachs Group, Inc. will "seek various paths" to develop its asset and wealth management department, but that the "M&A threshold remains high." The report points out that given the political tensions surrounding GEO Group Inc, policy uncertainty, and widespread market volatility caused by artificial intelligence, achieving expected returns is "not smooth sailing." This anxiety has spread to private credit companies, with investors increasingly concerned about these lending institutions relying too much on software companies that could potentially be eliminated by artificial intelligence, and worried about deteriorating credit quality. Solomon wrote that these concerns "remind us that the credit cycle is not over." He stated that as market volatility increases, "prudent risk management" becomes more necessary, which is a focus of Goldman Sachs Group, Inc. Solomon expressed that in the long term, as more companies deploy such technology and investments grow, the benefits of artificial intelligence will "gradually emerge." He wrote, "Any new technology will have winners and losers." Goldman Sachs Group, Inc. itself is committed to expanding artificial intelligence into six initial areas of its business: customer access, supplier management, regulatory reporting, lending, corporate risk management, and sales. The company informed employees last year that with further cost savings across various business units and seizing opportunities brought by artificial intelligence, more layoffs are expected.