Goldman Sachs Group Inc. is exploring a significant risk transfer (SRT) deal. The transaction involves a multi-billion dollar portfolio of subscription lines.
Subscription lines provide loans to private equity funds. These credits are backed by the capital commitments of the funds' investors.
The bank is currently gauging investor interest and negotiating final terms. This transaction allows Goldman Sachs to reduce risk-weighted assets and manage regulatory capital requirements.
A representative for Goldman Sachs declined to comment.