Goldman Debuts Fund Built to Replicate Private Equity Returns

Goldman Sachs Asset Management is partnering with MSCI Inc. to roll out an innovative exchange-traded fund (ETF) designed to mirror the performance of private equity investments.

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The new fund, called the Goldman Sachs MSCI World Private Equity Return Tracker ETF (GTPE), will begin trading Thursday under the ticker GTPE. According to the announcement, the ETF tracks an MSCI index built to replicate “private equity-like returns” using a diversified mix of publicly traded stocks. The portfolio includes roughly 1,500 global equities, employing both long and short strategies to achieve its target results.

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With this launch, Goldman Sachs joins a growing group of asset managers exploring creative ways to deliver private equity-style exposure in the more accessible and liquid ETF format. Some previous attempts in the space have focused on purchasing shares of buyout firms or allocating a limited percentage of assets to private securities in line with the SEC’s 15% cap on illiquid holdings for open-ended funds.

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However, Goldman’s new ETF takes a different approach. Instead of owning private companies directly, GTPE aims to replicate the performance patterns of private equity investments tracked by MSCI’s proprietary private company database which covers approximately $7.7 trillion in global private equity fund assets. The strategy works by mirroring the regional, sector, and style exposures found within that dataset using publicly traded equities.

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“This isn’t private equity it’s private equity replication,” explained Brendan McCarthy, global head of ETF distribution at Goldman Sachs Asset Management. “There’s a segment of investors who want the diversification benefits of private equity but can’t easily access it because of the operational hurdles things like lockup periods, documentation, and capital calls. GTPE offers a practical way to gain similar diversification without those restrictions.”

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McCarthy added that the fund is geared toward both retail investors and institutional clients, based on growing interest across both groups. The ETF carries an annual expense ratio of 0.5% and is managed by Goldman’s Quantitative Investment Strategies (QIS) team, led by Oliver Bunn.

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The MSCI index that serves as GTPE’s foundation launched earlier this year. Its top holdings currently include Microsoft, Eli Lilly, and Palantir, reflecting the broad exposure to innovative, high-growth sectors often favored by private equity investors.

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While demand for private assets continues to grow, one persistent challenge has been the lack of a standardized benchmark for measuring private equity performance against public markets. McCarthy noted that this collaboration with MSCI seeks to fill that gap.

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“The real opportunity here and what makes this partnership so exciting is that we’re doing something that hasn’t really been done before in this space,” McCarthy said. “By working with MSCI, we’re creating a benchmark framework that helps institutional investors and asset owners better conceptualize and manage private equity exposure.”

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The move reflects a broader trend in asset management, where firms are increasingly blending quantitative innovation with alternative investment strategies to open new doors for diversification.

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By packaging private equity-style risk and return characteristics into an ETF structure, Goldman aims to make this traditionally exclusive asset class more accessible without sacrificing the liquidity and transparency that ETFs are known for.

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For investors, GTPE could serve as a bridge between traditional equity investing and alternative assets, offering the potential for enhanced returns with daily tradability. As more investors seek exposure beyond conventional stocks and bonds, products like GTPE may mark a new chapter in the democratization of private markets.

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Ultimately, the collaboration between Goldman Sachs and MSCI underscores a shared goal: making the complex world of private equity more measurable, investable, and available to a wider audience.

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