$20 billion raised for private financing by Goldman Sachs

Wed May 29 2024
Eric Whitman (323 articles)
$20 billion raised for private financing by Goldman Sachs

Goldman Sachs Asset Management’s alternative investment platform has successfully raised over $20 billion for its latest fund, which focuses on senior direct lending to global businesses supported by private equity.

Goldman Sachs Alternatives announced on Wednesday that their latest fund, West Street Loan Partners V, is one of a series of flagship large-cap senior direct lending vehicles. Goldman Sachs Alternatives’ private-credit unit manages Loan Partners V.

James Reynolds, the asset manager’s worldwide head of direct lending, expressed his belief that the addressable market is expanding. “This represents the highest amount of uninvested capital in the history of private equity.” We believe that this serves as an exceptional foundation to generate appealing prospects.

Goldman Sachs has allocated $4 billion to 37 portfolio firms since the fundraising campaign commenced.

Loan Partners V has concluded its fundraising campaign, securing a total capital of $13.1 billion from both existing and new investors. Additionally, Goldman Sachs and its staff have made promises to support the project. The asset management successfully concluded transactions totaling over $7 billion in large-cap senior direct lending managed accounts, as well as $550 million in co-investment vehicles. Institutional investors encompass American and global pension plans, insurance firms, and sovereign-wealth funds. The last Loan Partners fund successfully raised approximately $7 billion.

Goldman Sachs stated that the fundraising is occurring during a favorable time for senior direct lending. This is due to the anticipated increase in merger and acquisition activity, as private equity firms have a large amount of uninvested capital and are looking to distribute returns to investors.

“In recent quarters, we have observed an increase in merger and acquisition (M&A) activity,” stated Reynolds. “And that applies to all of our regions.” That spans throughout North America, Western Europe, and Asia.

According to a news release from the company, Goldman Sachs believes that the current situation presents a favorable opportunity for alternative direct loan sources. These sources can offer borrowers significant size, structural flexibility, and assurance of successful completion.

Goldman Sachs Alternatives established its private-credit division in 1996 and has allocated $185 billion to various investment strategies, such as senior direct lending, mezzanine, hybrid capital, and asset finance.

Eric Whitman

Eric Whitman

Eric Whitman is our Senior Correspondent who has been reporting on Stock Market for last 5+ years. He handles news for UK and Europe. He is based in London