Goldman Sachs announced today that it has closed its second real estate credit fund, Broad Street Real Estate Credit Partners II (RECP II), with over $4 billion in total capital available to invest, including expected leverage. Limited partners in RECP II include existing as well as new institutional and private investors from throughout the Americas, Europe and Asia. RECP II will be managed by the real estate group within Goldman Sachs’ Merchant Banking Division (MBD). With this new vehicle, Goldman Sachs will be able to offer these lending capabilities to borrowers in Europe for the first time, building on its track record in the United States.
“RECP II will build upon the strong performance of our first fund, which invested over $3.5 billion in high quality loans, and our team’s proven track record in creating solutions on complex transactions,” said Alan Kava, co-head of MBD’s real estate investing group. “We are thankful for the continued support of the repeat investors from our first fund and are excited by the strong group of new investors that have expressed confidence in our strategy and the talented team we have in place.”
RECP II seeks to generate attractive risk-adjusted returns through the creation of a diversified pool of investments in both senior and mezzanine loans collateralized by high quality real estate assets. The Fund’s primary focus will be to create strong current yield for its investors through the origination of loans to facilitate real estate acquisitions, refinancings and recapitalizations throughout the United States and Europe. As one of the largest global investors in private real estate credit, the team’s dedicated platform, strong sponsor relationships and access to the entire Goldman Sachs network ensures comprehensive coverage of the market and allows for the creation of unique lending opportunities.
Jim Garman, the London based co-head of MBD’s real estate investing group added, “The size of our capital pool combined with the depth of our local real estate knowledge allows us to provide borrowers with customized loan structures on large, complex transactions with speed and certainty of execution. We are excited to add credit investing to our European platform which will allow us to build upon our long history of investing in this region.”
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