Goldman Sachs appear to have had their heads turned by the recent “higher than expected” $920m valuation of GlobeOp. The general feeling from articles I have read seems to be that Prime Brokerage business is what gains you traction in the Hedge Fund market, so by Goldman’s selling their fund admin business to raise capital it probably won’t be too damaging to them. Goldman’s recent financial results were also not great, so there may well be a need to streamline their investment banking business.
The article below suggests discussions are only in the early stages, so all we can do is watch and see how this story develops. How this would affect Goldman’s operation in Cayman is not yet known, but it would be yet another major transaction to take place here following RBC’s purchase of Coutts from RBS, and also the sale of Walkers Management to Intertrust.