Goldman Sachs raises $11.7B for private equity funds

Goldman Sachs's The Goldman Sachs Group, Inc. ↘ 3.96% asset management arm said on Tuesday that its alternatives unit has raised $11.7 billion across its latest private equity funds and related vehicles, marking the debut of a dedicated Asia equity strategy alongside its flagship buyout fund.reuters+1

The fundraising included $9.6 billion for West Street Capital Partners IX, the ninth vintage of Goldman Sachs Alternatives' flagship buyout business, $1.6 billion for West Street Asia Equity Partners I, its first Asia-focused private equity strategy, and $500 million for related co-investment vehicles.finimize+1

Fast Deployment, Measured Ambitions

More than one-third of the flagship fund's capital has already been put to work. Michael Bruun, global co-head of private equity at Goldman Sachs Alternatives, told Reuters the firm expects to deploy the rest over roughly four to four-and-a-half years, with plans to hold investments between four and five years.reuters

"We continue to be quite firm that we need to see value creation over that period and facilitate an exit over that period," Bruun said.reuters

The fund targets companies with enterprise values between $500 million and about $2 billion to $3 billion. Its early investments include Schellman, a U.S. cybersecurity audit firm, Numantec, a European medical devices maker, and Excel Sports Management, a U.S. sports representation and marketing agency.theedgemalaysia+1

Building a Broader Platform

WSCP IX drew capital from institutional and high-net-worth investors across North America, Europe, and the Middle East, with Goldman Sachs and its employees also making commitments to the fund. The firm is separately continuing to raise capital for its pan-Asia private equity strategy, which focuses on controlling stakes in middle-market investments and select growth opportunities across the region.theedgemalaysia+1

The Bigger Picture

Goldman Sachs Alternatives had $459 billion in assets under supervision as of June 30 and has set a target to grow that figure to $750 billion by the end of 2030. The rapid early deployment of the flagship fund could help the firm ramp up fee-earning assets sooner, though it also concentrates exposure to current deal pricing, making future exits the key test ahead of any successor fundraise.finimize+2