Goldman Sachs Asset Management Closes $15.2 Billion Mezzanine Funds, Invest in Junior Fixed Income of High Quality Private Equity-Backed Businesses
21st January 2023 | Hong Kong
Goldman Sachs Asset Management with more than $2 trillion AUM (Assets under Management, has announced the final close of the $15.2 billion Mezzanine funds (West Street Mezzanine Partners VIII), investing in junior fixed income of high quality private equity-backed businesses. The $15.2 billion fund raised comprises of $11.7 billion equity and $3.5 billion of long-term asset financing (Mezzanine Partners VIII has invested or committed approximately $4 billion across 13 portfolio companies). The West Street Mezzanine Partners VIII is managed by Goldman Sachs Asset Management Private Credit team. Goldman Sachs Asset Management raised its first mezzanine fund in 1996, raising $160 billion over 26 years into private credit of which $53 billion invested into mezzanine strategies.
“ Goldman Sachs Asset Management Closes $15.2 Billion Mezzanine Funds, Invest in Junior Fixed Income of High Quality Private Equity-Backed Businesses “
Goldman Sachs Chief Investment Officer Asset & Wealth Management Julian Salisbury: “We are deeply appreciative of the support from existing and new limited partners. The demand is a testament to our team’s experience and track record navigating market cycles in mezzanine debt over almost three decades. Investors are increasingly focused on income generation and capital preservation in a higher inflation and higher interest rate environment.
Given our team’s global presence, relationships with financial sponsors and depth of credit investment experience, we are confident we can continue to directly source attractive private credit investments in high quality companies with predictable cashflows and stable business models. We believe our differentiated approach allows us to navigate the volatile current market conditions and position ourselves to best identify investment opportunities that drive attractive risk-adjusted returns for our investors.”
Goldman Sachs Asset Management – Private Credit & Mezzanine Funds
Goldman Sachs Asset Management – The Fund is managed by the Private Credit business within Goldman Sachs Asset Management, with a global team of over 150 experienced credit investors drawing on the wider platform and resources of Goldman Sachs to source investments and add value to portfolio companies. Goldman Sachs raised its first mezzanine fund in 1996 and since then has consistently been one of the largest providers of mezzanine financing globally, pioneering the development of the investment strategy. The firm’s investment teams have navigated multiple market cycles and environments, developing unique platform longevity and a strong track record.
Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1996, the Private Credit business within Goldman Sachs Asset Management is one of the world’s largest private credit investors with over $100 billion in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies. Our deep industry and product knowledge, extensive relationships and global footprint position us to deliver scaled outcomes with speed and certainty, supporting companies from the lower middle market to large cap in size.