CEO Morning Brief

Goldman Raises US$14b for Private Equity Secondaries Fund

Publish date: Thu, 21 Sep 2023, 09:01 AM
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TheEdge CEO Morning Brief

(Sept 20): Goldman Sachs Asset Management has raised US$14.2 billion (RM66.48 billion) for a new vehicle to buy stakes in private equity funds.

The US investment firm closed the Vintage IX fund with commitments from institutional investors, high-net worth individuals and Goldman Sachs employees, according to a statement on Wednesday.

While the secondary market is dominated by investors adjusting their exposure to private equity in a stressful macroeconomic environment, it’s also helped by the emergence of so-called continuation vehicles that allow buyout firms to own a business beyond the typical holding period.

“The supply/demand analysis of the market is favouring buyers,” Harold Hope, global head of secondaries at GSAM, said by email. “The opportunity set is driven by the growth in the private markets and factors like over-allocation that are driving a greater need for liquidity.”

GSAM’s last secondaries fund closed at US$10.3 billion in 2020.

The firm has separately raised about US$1 billion for a new infrastructure secondaries fund called Vintage Infrastructure Partners. It comes with investors continuing to pour money into everything from toll roads to power networks as they seek out assets that can deliver strong, steady returns and guard against inflation.

“The infrastructure secondary market is still developing but is growing quickly,” Hope said. “Most investors are viewing it as a complement to traditional fund commitments and/or direct investments, and are funding it from their infrastructure allocations.”

Source: TheEdge - 21 Sep 2023

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