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“Tectonic shifts” are reshaping the private markets and spurring consolidation among alternative asset managers, explains Ұ������ CEO Jon Winkelried on Goldman Sachs Exchanges: Great Investors.

“There's clearly a trend toward consolidation and concentration in our industry,” he says. “The largest pools of capital want to do more with fewer managers. People want to concentrate and focus their relationships because they feel like they'll be important to their GPs [general partners] that way. They'll get better terms. There will be more strategic dialogue, top-of-the-house relationships, as well as relationships through the deal teams and through the investing functions.”

Another big shift in the industry, Winkelried explains, is the coming together of alternative asset managers and insurance firms as a way to create a more permanent balance sheet and to help fund growth. “What's happened is that these firms have also now realized if we can lengthen the duration of our capital base…that changes the equation with respect to capital that we have versus capital that we have to go out and raise,” he says. “And that's very valuable. So, everyone is focused on this question of lengthening duration or permanent capital.”

Winkelried, who also spent 27 years at Goldman Sachs ultimately serving as the firm’s president and co-chief operating officer, also shares the lessons he learned from helping to take Goldman Sachs public in 1999, to his experience in taking Ұ������ public in 2022.