Goldman Sachs is expanding its alternatives footprint with the acquisition of FGI Worldwide, a New York-based specialty lender that provides working capital financing and trade credit insurance to small and mid-size businesses. The deal, announced this week, comes as the firm's business development company (BDC) faces early credit headwinds, including a 3.7% decline in net asset value per share in the first quarter of 2026 and a rise in non-accrual loans to 4.7% of its portfolio.
FGI Acquisition Details
FGI, founded 25 years ago, operates through three business lines: FGI Finance, FGI Risk, and FGI Tech. It offers asset-based lending, credit insurance, and a proprietary software platform that automates credit insurance policy management in real time. Anthony Arnold, a partner in Goldman's private equity business, said the firm was attracted to FGI's underwriting capabilities and technology infrastructure. "As the company's first institutional investors, we look forward to bringing the full scope of Goldman Sachs' resources to help FGI capitalize on the significant opportunities ahead," Arnold said.
Michael Coleman, a managing director within the private equity group, highlighted "FGI's exceptional track record of innovation, growth, and credit performance." Alongside the acquisition, Sami Altaher, co-founder and president of FGI, becomes CEO, succeeding David DiPiero. Altaher noted that the partnership reflects a shared vision for the company's future.
Record Fundraising Amid BDC Challenges
The FGI acquisition follows a record fundraising year for Goldman's alternatives division, which raised $115 billion in 2025, bringing cumulative gross third-party fundraising to $438 billion since the firm's 2020 Investor Day. The firm targets $75 billion to $100 billion in annual fundraising and aims to have fee-paying alternative assets under supervision reach $750 billion by 2030. However, the BDC's first-quarter results have drawn scrutiny. Net asset value per share fell to $12.17, down 3.7% from the prior quarter, while non-accruals rose to 4.7% of the portfolio at amortized cost, up from 2.8%.
A Goldman spokesperson attributed the NAV decline to broader market spread widening rather than credit deterioration. Vivek Bantwal, co-head of private credit at Goldman Sachs Alternatives, noted that legacy loans underwritten before a March 2022 management change accounted for 99.5% of non-accrual balances. Approximately 58% of the BDC's portfolio now consists of loans originated after that overhaul, which Bantwal said are "performing as expected." The fund made $46.5 million in new commitments across 17 companies in Q1 and declared a dividend of $0.32 per share, while also announcing a $75 million stock buyback program.
Broader M&A and Strategic Context
FGI is not Goldman's only recent acquisition in alternatives. The firm's annual report disclosed its January acquisition of Industry Ventures, a venture capital platform that bolsters its External Investing Group, which oversees over $500 billion in assets. Goldman also completed the acquisition of Innovator Capital Management last month, positioning it among the top 10 active ETF providers globally, particularly in outcome-based products. CEO David Solomon, in the firm's annual letter, identified wealth management, alternatives, and solutions as the three pillars of future growth for the asset and wealth management division. The firm reported full-year 2025 net revenues of $58.3 billion, up 9% year over year, with earnings per share rising 27% to $51.32.
For financial advisors evaluating client exposure to private credit, the divergence between Goldman's strong fundraising narrative and the BDC's quarterly markdowns illustrates the complexity of the asset class. Investors have been scrutinizing BDCs and their exposure to software sector loans, particularly as artificial intelligence threatens certain portfolio companies' business models. As Western Alternative Strategies CIO warns, advisors may be overpaying for volatility hedging while underpreparing for tail risks, a caution that resonates amid these mixed signals.
