The Goldman Sachs Group (NYSE: GS) is one of America’s largest financial services companies and provides diversified investment management through its investment banking, wealth management and private equity divisions. Goldman Sachs services individuals and corporations, with a preference for high-net-worth investors and large enterprises. The company's private equity division is particularly active, and judging by its portfolio, is focused on acquiring some of the most exciting technology companies in America. Here are five of Goldman's most notable holdings.
Benefitfocus Inc. (NASDAQ: BNFT) is a software-as-a-service (SaaS) company based in Charleston, South Carolina, that offers insurers and employers a technology-driven benefits-management platform. For employers, the company aims to reduce the complexity of managing benefits for its employees. The platform is designed to make finding and managing the right benefits packages easier and less stressful for managers.
The integrated platform connects employers and carriers in a seamless software package. This allows human resources managers to find suitable benefits packages for their employees, reducing the time and costs associated with traditional methods of sourcing employee benefits plans. While the company has more than 100,000 companies on its platform, it still has not reached profitability, despite going public in 2013.
A global leader in the digital content delivery industry, Limelight Networks Inc. (NASDAQ: LLNW) helps organizations deliver faster websites, better applications, the highest-quality video and reliable downloads. The company is on the forefront of emerging digital trends and has worked with Microsoft Corp. (NASDAQ: MSFT) and The Walt Disney Company (NYSE: DIS).
Goldman Sachs led a $130 million investment round for the company in 2006, before the company raised $240 million in its 2007 initial public offering (IPO). The company continues to excite investors despite posting a $23.9 million loss in 2015.
Founded in 1999, MetricStream is a governance, risk management and compliance (GRC) software company based in Palo Alto, California. The company offers a customized platform for individual businesses that helps businesses manage compliance with quality standards, industry regulations and corporate policies.
While MetricStream continues to operate, investors don't seem very excited about the company, and its last fundraising round, in 2013, only brought in $48 million of the $70 million for which it planned. From Goldman Sachs’ perspective, this company might become a liability and weigh down the portfolio if it doesn’t find new ways to compete and grow.
A client relationship management (CRM) provider for health care providers throughout America, Evariant aims to deliver enterprise solutions that simplify communications in the healthcare industry. The company offers customers customizable software for enterprises that help doctors’ offices manage patient appointments and for service providers to more easily communicate with physicians.
The company is one of several key holdings in the healthcare industry for Goldman Sachs and is positioned to be a key player in healthcare communications. The company started in Massachusetts and has added offices in Connecticut, Illinois and Texas in the past few years. Growth is happening in the company, and GS might be looking at an IPO soon to optimize its return on this company.
Persado is a content creation platform that heavily relies on cognitive technologies to develop website and marketing content for companies. Cognitive programming technologies refer to what is commonly called machine learning and artificial intelligence. Persado uses this new and developing technology to create smart content for clients.
Essentially, the company’s technology platform will create machine-generated content for companies to use on their websites or in marketing materials. The artificial intelligence component implies that Persado’s technologies write this customized content with little to no input from a software developer and minimal input from the client.
This advanced technology company fits nicely with Goldman’s overall focus on technology. Persado spun off from its parent company, Upstream, just before Christmas 2012, and has been a Goldman company since 2014. Having added more than $1 billion in new revenue for its 80 or more global clients, the company seems to have a very bright future.