Rich Friedman on the Rise of Private Markets and AI Investing – Goldman Sachs Exchanges

Rich Friedman on the Rise of Private Markets and AI Investing – Goldman Sachs Exchanges — Transcript

Market views

Bullish

WEALTHMGMT— Wealth management is an attractive investment area due to growing numbers of wealthy people seeking investment services, particularly in the $500M-$1.5B range in Europe.
INFRA— Infrastructure servicing data centers is more attractive than owning the data centers themselves, given the massive capital deployment expected in this space.
SPORTS— Sports services businesses (not teams themselves) represent a growing investment opportunity as the sports industry continues to expand.

Bearish

DATACENTER— Data centers face questionable returns given the massive $4 trillion capital deployment expected, suggesting potential overcapacity and poor economics.
AIMODELS— AI is the most hyped investment theme ever seen, with valuations at multiples of 100x and unrealistic timelines for promised capabilities, suggesting caution despite unprecedented technological capabilities.
PE— Private equity faces a crisis around exits and liquidity, with public and strategic markets unlikely to absorb the massive inventory of PE-owned companies, creating a structural challenge for the industry.

Not investment advice.