The business is taking minority stakes in alternative assets managers including private equity, venture capital and hedge funds. The IPO would take place in London.

Goldman Sachs wants to float the assets of its Petershill Partners unit, hoping to profit from a private equity boom with an initial public offering valuing the investment vehicle at more than $5 billion.

Petershill, which takes minority stakes in alternative assets managers including private equity, venture capital and hedge funds, will be a standalone company operated by the Goldman Sachs Asset Management team.

"Over the past 14 years, the Petershill group within Goldman Sachs has established itself as a partner of choice in the private capital sector. This IPO would be a natural next step in the evolution of the offering to partner firms, establishing a permanent capital source, and demonstrating long-term strategic alignment and partnership. We would continue to support the growth of leading alternative asset managers whose best days are ahead of them, whilst allowing their management teams to maintain their strategic focus, drive and independence," Ali Raissi, co-head of the Petershill group within Goldman Sachs, said in a statement. 

The IPO would comprise, firstly, the issue of new ordinary shares, raising gross proceeds of about $750 million to fund ongoing costs and buy more alternative asset manager stakes and, secondly, the sale of existing ordinary shares in order to achieve a free float of 25 per cent, Goldman Sachs said. The free float makes it eligible to be included in FTSE indices.

Reuters quoted an unnamed source close to the deal saying that analysts put it at in excess of $5 billion.