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Goldman Sachs Closes The Largest Private Equity Fund Since 2007 At $9.7 Billion

Goldman Sachs Closes The Largest Private Equity Fund Since 2007 At $9.7 Billion
According to Goldman Sachs Group Inc., it has closed a $9.7 billion private equity fund, its largest since 2007. The fund aims to invest in businesses with an enterprise value of between $750 million and $2 billion.
The "West Street Capital Partners VIII" fund is housed within the asset management division of the Wall Street behemoth. In order to acquire controlling interests in businesses operating in the financial and business services industries, as well as in the healthcare, consumer, technology, and climate change transition sectors, it plans to invest an average of $300 million.
"This fundraise builds on our 30-year history in private equity as we continue to scale the business and make our alternatives offerings available to a wider range of investors," Julian Salisbury, global co-head of Goldman Sachs Asset Management, said in a statement.
The company, GSAM, is in charge of $2.5 trillion worth of assets, of which $176 billion are held in private equity (PE).
Money managers at Goldman Sachs are not the only ones raising PE funds. BlackRock Inc. raised $3 billion just last year to invest in PE secondary market deals, and it currently has about $35 billion devoted to PE strategies.
According to a spokesperson, Morgan Stanley Investment Management has also closed a number of private equity funds this year, totaling more than $3.25 billion in assets under management.
A total of $40 billion in assets are being managed by the company's Private Credit & Equity platform, including $25 billion in direct, secondary, and co-investment private equity funds.
Pension funds, sovereign wealth funds, financial institutions, family offices, and high-net-worth individuals are among the investors in Goldman's most recent endeavor. The bank and a few of its employees also made investments.
The fund has previously supported companies like Parexel, a clinical research organization, Norgine, a European pharmaceutical company, and Nippo Corp, a Japanese road paving company.
"The fund is well positioned for the market environment and we see opportunities across multiple sectors and geographies," Salisbury said.
According to a recent report from PwC, new risks like inflation, rising interest rates, geopolitical unrest, and increased government scrutiny have contributed to the increase in market volatility and a slowdown in private equity deals in 2022.

Christopher J. Mitchell

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