A seat in
Group Inc.’s partnership was once Wall Street’s most coveted prize. The firm’s 1999 initial public offering minted one generation of multimillionaires; the trading and buyout boom of the 2000s made another.
But pay fell after the financial crisis and the partnership swelled. Goldman’s partners remain one-percenters, but Wall Street’s brass ring has lost its luster.
Chief Executive David Solomon is trying to restore it. Goldman’s new class of partners, to be promoted next month, is likely to be its smallest since the mid-1990s, according to people familiar with the matter. And for those who make the cut, the Wall Street firm is dangling a new financial carrot: access to profits from its private investment funds.
Partners will receive carried interest—a slice of future profits, taxed at low rates—in four of Goldman’s private investment funds starting this year, people familiar with the plans said. The firm