Goldman Sachs chief executive Simon Rothery has told staff the investment bank's funds management arm could best grow "under new ownership".
In a memo sent to staff on Wednesday morning, which confirmed a report in Street Talk, Mr Rothery, who oversees the bank's Australian and New Zealand operations, said the firm was considering its future options for Goldman Sachs Asset Management Australia. 
"GSAM management, in conjunction with Australian investment leadership, is considering future options for GSAM Australia, which will involve exploring the sale of the GSAM Australia focused investment capabilities and funds and the associated distribution capabilities, while retaining and continuing to grow our global product platform in the Australian market," Mr Rothery said in an internal memo.
"We are only in the very initial stages and specific detail will be driven by the sales process and the acquirer as we move forward."
As Street Talk revealed, the options for GSAM's wholly-owned domestic equities team, include a sale, partial sale or even a management buyout, led by head of Australian equities and well-known stockpicker Dion Hershan.
The review is also expected to extend to the firm's Australian fixed income asset management business.
Mr Rothery noted GSAM's global strategy was largely focused on its global product capabilities.
"In Australia, we believe the next level of growth for the domestic managed product business could be best achieved under new ownership.
"One of GSAM's key points of differentiation is its expertise in delivering global investment strategies and opportunities to investors across multiple markets. In Australia, we believe this can be achieved independent of the onshore managed product business.
"Importantly, this GSAM review is being undertaken independently of the rest of Goldman Sachs in Australia." GSAM will maintain a substantial local presence, office and licence, the memo to staff noted.
Mr Hershan's Goldman Sachs Australian Equities fund returned 7.5 per cent a year over the past five years, according to Mercer's investment survey released on Tuesday.