Goldman Sachs Group is weighing an option to minimise the $59bn of alternative investments in its asset management unit, the firm’s asset and wealth management division’s chief investment officer Julian Salisbury told Reuters in an interview.

The move is aimed at increasing the bank’s profits, which has seen a dip due to investments made by the firm in its asset management arm, added the executive.

It will see the American banking giant divesting its positions in the upcoming years as well as swap a few of its alternative funds with external capital, Salisbury told the publication.

Salisbury was quoted by Reuters as saying: “I would expect to see a meaningful decline from the current levels.

“It’s not going to zero because we will continue to invest in and alongside funds, as opposed to individual deals on the balance sheet.”

Last week, Goldman Sachs reported a 66% decline in its fourth quarter profits, with its asset and wealth management arm recording a 27% year-on-year drop in net revenues.

The bank has also commenced the process of firing nearly 3,200 people across its global operations, representing the biggest layoff drive carried out by the company since the financial emergency in 2008.

Goldman Sachs will offer additional information on its asset management plan at its investor day to be held next month, according to Salisbury.

Salisbury added: “Obviously, the environment for exiting assets was much slower in the back half of the year, which meant we were able to realize less gains on the portfolio compared to 2021.”