By Carolina Mandl and Elizabeth Dilts Marshall

NEW YORK (Reuters) – Goldman Sachs (NYSE:)’ President and Chief Working Officer John Waldron mentioned on Thursday the financial institution continues to search for acquisition alternatives within the wealth and asset administration house, because it seeks to diversify its income stream.

“Valuations are making extra sense, getting extra attention-grabbing. That opens up alternative for extra issues to have a look at,” he informed a banking convention.

Nonetheless, the COO mentioned the precedence can be to mattress down the latest acquisitions, and added that the financial institution is extra cautious about capital expenditure given the present macro surroundings.

“I’d say we now have rather a lot to combine and rather a lot to function,” Waldron mentioned, including that a part of his job is to guarantee that “we combine, and we execute on these acquisitions.”

The Wall Road financial institution is looking for to diversify its enterprise to make it much less susceptible to capital markets cycles. As a part of this technique, the financial institution is increasing its asset and wealth administration arms.

Waldron sounded a notice of warning for the capital market exercise, which he expects to be down rather a lot, saying the volumes are down 70% year-over-year. However he mentioned the M&A exercise has been extra resilient.