has revived Bridge Street funds, which allows its partners to invest alongside the bank without the burden of fees, as reported by Bloomberg. The fund was offered initially before Goldman Sachs went public in 1999, it was revised in 2011, and has since raised$120 million from 400 partners.
The funds create extra perks for the investment banks partners and management. CEO Lloyd Blankfein got $125.9 million from the fund in the last five years, an amount that exceeds salaries and bonuses.
Bridge Street fund was dropped in favor of allowing partners to invest in specific funds it raised for clients. All such special funds were scrapped in 2009 and 2010, as the Volcker Rule, part of the Frank Dodd Act limited the amount banks could put in their private equity funds.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at email@example.com.
Goldman Sachs also brought back Stone Street fund, open to 2, 000 managing directors. Alan Johnson of Johnson Associates, commented, “The negative of things like this is if clients wonder if you are saving the best stuff for yourselves. So you’ve got to be careful of that and let them know that the clients come first or are beside us in deals. We are not ahead of our clients.”