⚠ Fundraising Is Not Yet Fee IncomeLow threat

Goldman Sachs (GS) — threat to the moat

Goldman's record private fundraising has not yet turned into fee growth to match.

Money raised is not money earning fees until it is invested, and alternatives fees have lagged the fundraising. Alternatives management and other fees rose 8% to $2.37 billion in 20251, in the year Goldman raised a record $115 billion2.

Alternatives fee rate by strategy, Q4 2025 (bps)89Corporate equity69Credit57All alternativesGoldman Sachs Q4 2025 earnings presentation
The average is below the headline strategies.

The fee rate also varies by strategy. The average effective fee on total alternatives was 57 basis points in the fourth quarter of 20253 and 58 in the second quarter of 20264, well below the 89 basis points corporate equity funds earn5. As credit and hedge funds grow, the average may not rise.

The second quarter of 2026 did show faster fee growth: alternatives management fees of $725 million, up 22%6. One quarter above target does not make a year, but it is the first sign that the 2025 fundraising is being invested.

Incentive fees, the performance share of fund profits, were $489 million in 20257 and $112 million in the second quarter of 20268. They arrive only when funds sell holdings at a gain, so they lag fundraising by years.

The firm targets double-digit annual growth in alternatives management and other fees9. Growth below 10% for 2026 would say the fundraising was running ahead of what the funds could invest.

References
  1. ReportedAlternatives management and other fees rose 8% to $2.37 billion in 2025, in the year Goldman raised a record $115 billion.
    Goldman Sachs fourth-quarter 2025 earnings presentation and strategy update, Form 8-K exhibit 99.2 - Asset & Wealth Management: alternatives fundraising, fees, wealth, mandates and historical principal investments. — FY2025 · publ. 15 January 2026 · source ↗
  2. ReportedAlternatives management and other fees rose 8% to $2.37 billion in 2025, in the year Goldman raised a record $115 billion.
    Goldman Sachs fourth-quarter 2025 earnings presentation and strategy update, Form 8-K exhibit 99.2 - Asset & Wealth Management: alternatives fundraising, fees, wealth, mandates and historical principal investments. — FY2025 · publ. 15 January 2026 · source ↗
  3. ReportedThe average effective fee on total alternatives was 57 basis points in the fourth quarter of 2025 and 58 in the second quarter of 2026, well below the 89 basis points corporate equity funds earn.
    Goldman Sachs fourth-quarter 2025 earnings presentation and strategy update, Form 8-K exhibit 99.2 - Asset & Wealth Management: alternatives fundraising, fees, wealth, mandates and historical principal investments. — FY2025 · publ. 15 January 2026 · source ↗
  4. ReportedThe average effective fee on total alternatives was 57 basis points in the fourth quarter of 2025 and 58 in the second quarter of 2026, well below the 89 basis points corporate equity funds earn.
    Goldman Sachs second-quarter 2026 earnings presentation, Form 8-K exhibit 99.2 - ROE, ROTE, efficiency ratio, Dealogic rankings, AUS by channel, alternatives fundraising and wealth figures. — Q2 2026 · publ. 14 July 2026 · source ↗
  5. ReportedThe average effective fee on total alternatives was 57 basis points in the fourth quarter of 2025 and 58 in the second quarter of 2026, well below the 89 basis points corporate equity funds earn.
    Goldman Sachs fourth-quarter 2025 earnings presentation and strategy update, Form 8-K exhibit 99.2 - Asset & Wealth Management: alternatives fundraising, fees, wealth, mandates and historical principal investments. — FY2025 · publ. 15 January 2026 · source ↗
  6. ReportedThe second quarter of 2026 did show faster fee growth: alternatives management fees of $725 million, up 22%.
    Goldman Sachs second-quarter 2026 earnings presentation, Form 8-K exhibit 99.2 - ROE, ROTE, efficiency ratio, Dealogic rankings, AUS by channel, alternatives fundraising and wealth figures. — Q2 2026 · publ. 14 July 2026 · source ↗
  7. ReportedIncentive fees, the performance share of fund profits, were $489 million in 2025 and $112 million in the second quarter of 2026.
    Goldman Sachs Form 10-K for fiscal 2025 - segment results on the basis restated in the fourth quarter of 2025: net revenues by line, pre-tax earnings, return on equity, average common equity, loans and assets by segment for 2023-2025 - Asset & Wealth Management and Platform Solutions segment results. — FY2023-FY2025 · publ. 25 February 2026 · source ↗
  8. ReportedIncentive fees, the performance share of fund profits, were $489 million in 2025 and $112 million in the second quarter of 2026.
    Goldman Sachs second-quarter 2026 earnings results, Form 8-K exhibit 99.1 - segment and line revenues for the quarter and half, earnings, balance sheet, capital, VaR, assets under supervision and the dividend increase - Asset & Wealth Management revenues and assets under supervision. — Q2 2026 · publ. 14 July 2026 · source ↗
  9. ReportedThe firm targets double-digit annual growth in alternatives management and other fees.
    Goldman Sachs fourth-quarter 2025 earnings presentation and strategy update, Form 8-K exhibit 99.2 - Asset & Wealth Management: alternatives fundraising, fees, wealth, mandates and historical principal investments. — FY2025 · publ. 15 January 2026 · source ↗
Sources
Generated September 28, 2026