Goldman Sachs Catching Up With Competitors

Goldman Sachs Group Inc., the American multinational investment banking firm engaging in securities, global investment banking, and other financial services is hiring executives for its electronic equity-execution unit and has started making investments in trading infrastructure, software, and its dark pool.

Goldman Sachs, one of the world’s top equity-trading banks, climbed to No. 1 by revenue in the first quarter after it ranked second in 2014. In its latest push, it hired Raj Mahajan as head of equity electronic-execution services this year. Mahajan was recruited from high-frequency trader Allston Trading and the company is now setting its focus on establishing itself as one of the top-most players in automated trading. Goldman Sachs is now planning to pitch its improved systems before customers by emphasizing on fill rates.

Last year, Goldman Sachs emerged as an early supporter of the stock platform that was created by IEX Group Inc. This U.S. stock platform was portrayed in Michael Lewis’s book “Flash Boys” as an antidote to the recognizable ills of the multi-venue and superfast electronic trading in the market of today. The investment bank, after some major changes in the way stock trading happens, is all set to level the playing field for its clients.

The company recently raised more than $1bn for the Global Private Opportunities Partners II fund from its wealthy individual clients. The fund, meant for pursuing minority investments in global growth companies across sectors, is believed to be three times the size of a similar one raised by Goldman Sachs in 2011. The fund is being offered to clients of the wealth management division of the US bank. The new fund is led by Raanan Agus and Kenneth Eberts, who are co-heads of the Goldman Sachs Investment Strategies portfolio management team; the fund charges a 20 per cent performance fee and a 1.5 percent management fee.

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