Capital markets could receive a much-needed boost from upcoming technology initial public offerings (IPOs), according to Goldman Sachs CEO David Solomon. Speaking with CNBC’s David Faber, Solomon expressed optimism about the potential impact of IPOs from companies like chip designer Arm and grocery delivery service Instacart.
Solomon believes that the success of these IPOs could lead to a significant increase in market activity in the coming months. This would be welcome news for Wall Street, which has experienced a lackluster period for IPOs and mergers in the past year.
In 2021, Goldman Sachs enjoyed a record year for revenue, but Solomon has faced criticism and internal dissent over his leadership style and decision-making, which has been covered extensively in unflattering articles. Addressing these negative portrayals, Solomon stated that he does not recognize the “caricature” of himself depicted in the media. He emphasized that his colleagues and clients do not recognize this portrayal either.
During the interview, Solomon also discussed other topics such as tougher bank regulation, scaling back Goldman’s consumer finance ambitions, and the mergers market. He expressed optimism about an uptick in acquisitions as CEOs regain confidence in the coming months, although he cautioned that the recovery in mergers may trail that of IPOs.
Overall, Solomon’s positive outlook on the potential impact of upcoming tech IPOs provides hope for revitalizing capital markets and stimulating activity in the financial sector.