Goldman Sachs Group is reportedly in advanced discussions with the Kuwait Investment Authority (KIA) for a potential $10 billion investment mandate, a move that could further solidify the bank's private markets strategy across the Middle East.

According to Bloomberg, the mandate—still under negotiation—would be one of the largest partnerships of its kind between a Western financial institution and a Gulf sovereign wealth fund. The funds would be deployed over the coming years across multiple Goldman-managed vehicles, with a particular focus on credit, private equity, and infrastructure assets.

People familiar with the talks cautioned that no final agreement has been reached, and both Goldman Sachs and KIA have declined to comment.

Expanding a Long-Term Gulf Strategy

The discussions follow Goldman Sachs’ recent regional expansion. Earlier this month, the firm opened a new office in Kuwait to strengthen its local presence and deepen cooperation with regional institutional investors. It also launched onshore Private Wealth Management services in Riyadh and obtained a regional headquarters licence in Saudi Arabia, further anchoring its Gulf operations.

Goldman Sachs' latest earnings report shows that the bank currently oversees $374 billion in private assets under supervision, as it pivots toward long-term capital from sovereign wealth and pension funds. The Gulf region, with over $4 trillion in sovereign assets, has emerged as a key target for global investment banks seeking stable, large-scale institutional partnerships.

Kuwait's Strategic Investment Outlook

For the Kuwait Investment Authority—one of the world’s oldest and most influential sovereign wealth funds—the talks signal a continued diversification of its global investment portfolio. KIA, which manages an estimated $800 billion in assets, has historically maintained a balanced allocation across public equities, fixed income, real estate, and alternative investments.

Analysts note that a collaboration of this scale could enhance Kuwait’s exposure to global private markets at a time when institutional investors are seeking higher returns amid lower public market yields. It also underscores the Gulf’s growing role in shaping cross-border capital flows and private market dynamics.

A Strengthening Bridge Between Kuwait and Global Finance

If finalized, the mandate would not only expand Goldman Sachs’ footprint in the Middle East but also reinforce Kuwait’s position as a pivotal financial hub in the region. The partnership aligns with the Gulf’s broader trend of leveraging sovereign wealth capital to secure long-term growth, while deepening integration with global investment networks.

As global asset managers compete for access to sovereign wealth mandates, the potential $10 billion partnership between KIA and Goldman Sachs could mark a defining moment in the next chapter of Middle Eastern institutional investment.