Goldman Sachs Scores Big from SpaceX Windfall
Goldman Sachs (GS) reaped hundreds of millions of dollars in incentive fees after its clients cashed out early investments in SpaceX (SPCX). The investment bank had helped wealthy clients invest in SpaceX more than five years prior to its blockbuster June IPO, which took place at a valuation of $1.77 trillion.
The firm's wealth management business profited from the deal, as did some Goldman partners who were allowed to invest alongside clients. As a result, current and former senior executives may have personally earned large returns from the deal as well.
In addition to the incentive fees, Goldman separately earned about $100 million for its role as a lead adviser on the IPO. The firm is using part of the windfall to bring forward several years' worth of charitable donations due to recent tax changes making that approach more efficient.