Goldman Sachs raises $700m to co-invest with private credit firms
Goldman Sachs Asset Management has raised $700m (£556m) for a new fund that will co-invest with hedge funds and private credit firms.
The new fund – dubbed Union Bridge Partners 1 – will identify unique investment opportunities in both public and private markets that fall outside the mandate of traditional market participants, Goldman Sachs said.
The closed-ended fund, which is part of Goldman Sachs’ $340bn External Investing Group (XIG), has already deployed around 40 per cent of the capital raised. It has funded companies across North America and Europe in sectors including hospitality, fitness centres, software and music royalties.
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The capital was raised from a range of investors including sophisticated institutions, family offices, private wealth clients, and significant commitments from Goldman Sachs employees.
“This fundraise reflects the growing opportunity set in co-investments, including outside of private equity where it originated, and the advantages of the XIG platform to source and execute these investments,” said Michael Brandmeyer, global head of XIG at Goldman Sachs Asset Management.
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“We are grateful for the support of our clients in raising this inaugural fund and look forward to continuing to work with our extensive network of third-party managers to deliver attractive returns for clients.”
Philip Pallone, who leads the Union Bridge programme, said: “We have seen a significant increase in the opportunity to partner with our external managers to provide flexible capital solutions to companies across public and private markets. The Union Bridge programs allows us to be stronger partners to our external managers by committing value-added capital in their highest-conviction opportunities while at the same time providing our clients access to differentiated, often exclusive, investments that they would not otherwise be able to access.”
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