How Will Goldman Sachs (GS) Stock React to New Corporate Buyout Fund?

Goldman Sachs (GS) will reportedly soon be marketing a new corporate buyout fund of between $5 billion and $8 billion.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Goldman Sachs (GS) - Get Report will soon start marketing a new corporate buyout fund of between $5 billion and $8 billion, its first fund since the financial crisis, according to sources cited by the Wall Street Journal.

The firm is looking for an initial close by the end of the year, the sources added.

The new buyout fund is smaller than previous ones, less than half the $20 billion Goldman raised in 2007 for GS Capital Partners VI.

Goldman will contribute a small portion of its own capital this time, the Journal noted.

Shares of Goldman Sachs are lower by 0.03% to $160 in pre-market trading Friday.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share.

But the team also finds weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: GS

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