Jan 13 (Reuters) - Goldman Sachs ( GS ) is creating a

new team that will enhance its focus on financing mega deals and

providing loans to corporate clients, as the Wall Street giant

looks to grab a bigger slice of the lucrative private credit

market.

The new division, called Capital Solutions Group, will be a

part of the investment bank's global banking and markets unit,

and expand its suite of services for corporate clients, Goldman

said on Monday.

"There is significant demand from our investing clients for

private credit and private equity," CEO David Solomon said in a

statement, adding that the growth of private assets was "one of

the most important structural trends taking place in finance".

Banks have rushed to capitalize on the growing appeal of the

private credit industry, which has expanded into a nearly $2

trillion market. Most recently, in September, Citigroup ( C/PN )

and Apollo Global partnered for a $25 billion private

credit and direct lending program.

Private credit refers to loans provided by non-bank lenders,

which are typically made to risky borrowers or companies looking

to clinch mega buyouts with debt.

These loans can be processed quicker, and are an important

source of funding for borrowers deemed too vulnerable.

Goldman's new division will combine elements of its

financing group, its financial sponsors team and parts of its

fixed income, currency and commodities and equities businesses.

The bank has tapped insiders Pete Lyon and Mahesh Saireddy

to be the co-leaders of the new venture. Both will also join

Goldman's management committee.

Goldman shares were marginally lower in premarket trading.

The bank's plans for the new unit were first reported by the

Wall Street Journal earlier in the day.

(Reporting by Niket Nishant and Manya Saini in Bengaluru;

Editing by Shinjini Ganguli)