Goldman Sachs CEO David Solomon Sounds Caution on Private Credit Expansion

David Solomon, Chairman and CEO of Goldman Sachs, issued a stark warning about mounting risks in private credit markets during his keynote at Georgetown University's Financial Markets Quality Conference. The Wall Street veteran highlighted concerns about retail investor access to complex credit instruments amid an extended period without significant credit cycle stress.

Goldman Sachs has deployed $215 billion into private credit since pioneering the space in the 1990s. Solomon drew parallels between current investment grade private credit structures and past missteps: "We're doing things that remind me of when we've gotten into trouble before." His comments come as institutional capital floods into alternative credit solutions seeking yield.

The Goldman chief advocated for measured expansion of private credit access with robust safeguards. His cautionary tone reflects growing unease about credit quality erosion as non-bank lenders dominate middle-market financing. The remarks carry particular weight given Goldman's dual role as both major private credit player and traditional investment bank.