Goldman Spins Off More Private Equity
NEW YORK (
)--
Goldman Sachs
(GS) - Get Report
spun off a new private equity group dubbed New MainStream Capital.
The firm will manage about $250 million and invest inner city-based middle market companies, according to
Dow Jones Financial News
. The team that will manage New MainStream Capital was known inside Goldman Sachs as the Urban Investment Group.
The Urban Investment Group also managed a real estate business that Goldman will keep after the spinoff, according to the report.
Pantheon Ventures
, a "secondary" private equity firm, will be a significant investor in the paired-down Goldman fund.
Earlier this year the "Volcker Rule," named for former
Federal Reserve
Chairman Paul Volcker, was passed as part of financial services reform legislation and set new limits for banks on the size of private equity or hedge fund investments.
As a result of the Volcker Rule, banks have been
announcing private equity spinoffs and strategic changes in operations.
HSBC
(HBC)
spun off its Asian private equity fund this week; and
Bank of America
(BAC) - Get Report
spun off Ridgemont Equity Partners and
Citigroup
(C) - Get Report
sold its private equity funds to Lexington Partners and the StepStone Group several months ago.
--Written by Maria Woehr in New York.
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