Goldman Sachs Asset Management Chief Rich Friedman on Private Equity Crisis and Industry Evolution

Rich Friedman, Chairman of Goldman Sachs Asset Management, has had an illustrious career spanning over 45 years. He began his journey at Goldman Sachs in the 1970s and rose through the ranks to become one of the leading figures in alternative investing.

Friedman recalled his first day at the firm as a small and welcoming place with about 25-30 people in the group. He remembered seeing Joel Beckman, someone he grew up with in Riverdale, and felt reassured by the familiarity.

During the early years of his career, Friedman worked on private financings, credit debt financings, and lease financings. He was eventually assigned to work on early-stage buyouts, where Goldman Sachs provided financial advice to raise debt. Friedman's experience in asset-based lending at Citibank gave him an edge in this area.

Friedman mentioned that the crisis in the private equity industry is not about operating performance but rather exits. He noted that everything has slowed down, but he remains optimistic about the business model of searching, finding, managing, and creating value.