Goldman Partners Profit From No-Fee Private-Equity Funds

Goldman Sachs has brought back Bridge Street funds, which allow senior employees to invest alongside the bank in closely held companies without having to pay fees.  This year’s fund raised more than $120 million from about half of the 400 partners.

Employee private-equity funds are one of the extras that make rewards at Goldman Sachs the envy of Wall Street. Chief Executive Officer Lloyd C. Blankfein received $125.9 million from the funds in the past five years, more than he was awarded in salary and bonuses over the same period, filings show.

It’s consistent with Goldman’s past DNA and the DNA they want to have going forward. The big banks are no longer the pay leaders, no longer the masters of the universe, so they’ve got to be more creative.

http://www.bloomberg.com/news/2014-11-11/goldman-partners-profit-from-no-fee-private-equity-funds.html?alcmpid=markets

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