Investing & Lending segment
Goldman Sachs (GS) expanded its Investing & Lending operations by 9%. This resulted in total segment revenues of $1.7 billion for 1Q15.
Total revenues included $1.16 billion in net gains from equity investments. Primarily, these figures reflected strong corporate performance, net gains in public equities, and company-specific events in private equities. Interest income on debt securities partially offset these equity gains. This interest income was 18% lower than that of 1Q14 mainly due to decreased corporate lending.
Investment Management segment
Goldman Sachs manages $1.18 trillion in assets under management for clients across asset classes. In 1Q15, long-term assets increased by $13 billion, including $7 billion of new money and $6 billion in appreciation. A $14-billion decrease in liquidity products offset this growth.
Revenues for the Investment Management segment increased marginally by 1% to $1.58 billion compared to the previous quarter and 1Q14. The higher incentive fees reflected the improved performance of assets under management and better prospects for attracting more capital in the future. The company earned higher management fees but lower incentive fees when compared to 1Q14.
Goldman faces competition in the Investing & Lending segment and the Investment Management segment from banks, private equity firms, and asset management companies. These include JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C), Credit Suisse (CS), Evercore Partners (EVR), Deutsche Bank (DB), and Greenhill (GHL). Together, these companies form 16.28% of the Financial Select Sector SPDR (XLF).