- Goldman Sachs is reportedly planning to raise $8 billion for its second buyout fund since the 2008 financial crisis
Goldman Sachs is planning to raise $8 billion for its second buyout fund since the 2008 financial crisis, according to Reuters’ sources. This would increase the ability for the investment firm to secure deals worldwide.
Despite the coronavirus epidemic in China, Goldman has already started the fundraising process through its private equity arm West Street Capital Partners. For the time being, Goldman is targeting offshore non-Chinese prospective investors. And the investment firm has a goal of having its first close by the end of March.
At $8 billion, the second fund would be substantially lower than the larger $20 billion fund raised in 2007. But the private equity fund highlights Goldman’s commitment to the private equity arm. A number of other banks either divested or spun out their private equity businesses due to the Volcker Rule. The Volcker Rule limits banks from investing their own balances sheets into funds.
The new fund being set up by Goldman is going to focus on deals for majority control. The company has a goal of deploying 60% of the capital in America. And Goldman plans to make around 25 investments in various sectors at a deal range of between $150 million and $600 million.
West Street Capital Partners VII had raised around $7 billion in 2017. And the new fund will seek funding from both intuitional investors and company employees.
Ever since the company’s private equity arm was established in 1986, it raised around $47 billion since inception across eight funds. The private equity arm was named West Street Capital Partners (inspired by the company’s address in New York) in 2016.
One of the biggest investments for the private equity arm was the $2.7 billion buyout of Capital Vision Services in 2019. And the private equity arm also joined Riverstone Holdings in the $1.6 billion acquisition of Lucid Energy Group’s Delaware Basin unit.
