Goldman Raises $5.5B For Private Equity Fund

Investment bank Goldman Sachs raised $5.5 billion in investor commitments for a new fund to buy private-equity investments on the secondary market.
Author:
Publish date:

Updated from 12:50 a.m. EDT

Goldman Sachs

(GS) - Get Report

said Monday it raised its fifth dedicated private equity secondaries fund, GS Vintage Fund V, with about $5.5 billion in capital commitments.

Limited partners in the fund include existing and new institutional and private investors throughout the Americas, Europe, Asia and Australia, Goldman said in a press release Monday.

The news from Goldman confirms a report in the

Wall Street Journal

that the investment bank was nearing completion of $5.5 billion in investor commitments for a new fund to buy private-equity investments at a discount on the secondary market.

The GS Vintage Fund V would be the largest secondary fund ever raised, according to the

Journal

. Goldman has become one of the leaders in the secondary-buyout area, the newspaper reports, adding the investment bank has raised four previous funds totaling about $6 billion.

The

Journal

reports the market for such limited-partnership interests has become a hot sector of the private-equity market, as some pension funds and endowments scramble to reduce their exposure to the sector. Sales of such interests are occurring at discounted prices of 50% to 70% or more from face value, the

Journal

reports, citing private-equity executives.

One reason for the discount is that such partnership interests often include the obligation to put up more cash for future investments, according to the

Journal

.