GSAM’s core Australian equities team has been led since 2007 by Dion Hershan, who will be managing director in charge of the business after the sale. The Australia business has since grown its offering to comprise fixed income and multi-asset capabilities.
The price of the deal was not disclosed in a statement from TA on September 14.
A person familiar with the private equity firm said the business had successfully marketed its products to retail and institutional investors in Australia and elsewhere in Asia: “GSAM Australia is a neat little business and Dion is an impressive leader.”
TA has tackled no fewer than 18 asset management investments over the years. In June 2016, it acquired Russell Investments. It has also invested in and tackled takeovers of technology companies, including Australia’s Nintex Group.
In October 2015, GSAM sold its $ 1.1 billion Indian business to Reliance Capital Asset Management for $ 37.5 million. Reliance is India’s biggest asset manager, looking after $ 39 billion at the time of the acquisition.
An investment banker said: “GSAM is prepared to sell local businesses marketing to local people, while building its global presence. Supervising risks in far-flung locations can be costly.”
However, GSAM intends to retain its global presence, and will continue to market its strategies in Australia through offices in Sydney and Melbourne, following the completion of the TA deal.
Asset management comprised 18% of revenues generated by Goldman Sachs in 2015, according to the bank’s full-year results.
Since April 2015, GSAM has bought businesses involved in pension management and green investment, while developing smart beta offerings. In January, Goldman Sachs chief executive Lloyd Blankfein said: “Asset management is at the core of our strategy.” The division supervised assets worth more than $ 1 trillion as of June 30.