Goldman builds $21B war chest for biggest-ever private credit pool
Goldman Sachs Group Inc. has put together $21 billion for private credit wagers, its biggest war chest yet for Wall Street’s buzziest asset class.
The firm just closed the latest iteration of its direct-lending fund, drumming up firepower that includes fresh capital, borrowed funds and co-investments. That along with separately managed accounts will be put to use making more directly negotiated senior loans.
For money managers looking to expand, private credit has become one of their favorite calling cards. For Goldman, it takes on added importance, as it needs to prove it can rapidly raise mountains of money from outside investors, seeking steady fees over the big bursts of revenue once generated by wagering its own money.
Marc Nachmann, in charge of Goldman’s money-management operations, has been logging flight hours to reel in cash around the globe — from pension funds and insurance companies to sovereign wealth funds.
“I’ll go anywhere in the world where people want to talk to me,” Nachmann said in an interview. “They all view this as a super interesting asset class. When you go back 10 years, none of them had big allocations to direct lending.”
The latest fundraising marks the fifth iteration of the firm’s Loan Partners fund, a series that got off the ground in 2008. The haul includes $13.1 billion of equity capital, long-term financing as well as some of Goldman’s own balance sheet deployed alongside the commitments.
The firm also scored $500 million in co-investment vehicles that will deploy cash alongside the fund and $7 billion in separately managed accounts for the same senior-secured, direct lending strategy. Such accounts have been gaining popularity as they typically offer large capital allocators better
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