Key Takeaways
- • Goldman Sachs Asset Management's alternative investments platform said on May 29, 2024 that its latest fund, West Street Loan Partners V, raised more than $20 billion for senior direct lending.
- • The fund has invested or committed $4 billion across 37 portfolio companies to date and targets private equity-backed global businesses.
- • Loan Partners V closed on $13.1 billion of equity capital, long-term asset financing and Goldman Sachs balance sheet commitment, plus $550 million in co-investment vehicles and $7 billion in large-cap senior direct lending managed accounts.
- • The raise supports Goldman Sachs' broader private credit ambitions, which Reuters reported in March aim to grow the portfolio to $300 billion in five years from $130 billion.
Summary
Goldman Sachs Asset Management's alternative investments platform said on Wednesday that its latest fund had raised more than $20 billion for senior direct lending, according to Reuters. The vehicle, West Street Loan Partners V, is targeting private equity-backed global businesses and has already invested or committed $4 billion across 37 portfolio companies.
The fund is the latest in a series of flagship large-cap senior direct lending vehicles for Goldman Sachs Alternatives. It closed on $13.1 billion of equity capital, long-term asset financing and a Goldman Sachs balance sheet commitment. The firm also secured $550 million in co-investment vehicles and $7 billion in large-cap senior direct lending managed accounts. The fund, managed by the private credit business within Goldman Sachs Alternatives, drew capital from existing and new investors, along with commitments from Goldman Sachs and its employees.
Direct lending is a key segment of private credit, which has grown considerably in recent years as non-bank entities face fewer regulatory hurdles than traditional lenders. Reuters reported in March that Goldman Sachs aims to expand its private credit portfolio to $300 billion in five years from the current $130 billion.
James Reynolds, global head of direct lending for Goldman Sachs Alternatives, said that "the market for senior direct lending continues to benefit from the growing demand from financial sponsors."
The fund is the latest in a series of flagship large-cap senior direct lending vehicles for Goldman Sachs Alternatives. It closed on $13.1 billion of equity capital, long-term asset financing and a Goldman Sachs balance sheet commitment. The firm also secured $550 million in co-investment vehicles and $7 billion in large-cap senior direct lending managed accounts. The fund, managed by the private credit business within Goldman Sachs Alternatives, drew capital from existing and new investors, along with commitments from Goldman Sachs and its employees.
Direct lending is a key segment of private credit, which has grown considerably in recent years as non-bank entities face fewer regulatory hurdles than traditional lenders. Reuters reported in March that Goldman Sachs aims to expand its private credit portfolio to $300 billion in five years from the current $130 billion.
James Reynolds, global head of direct lending for Goldman Sachs Alternatives, said that "the market for senior direct lending continues to benefit from the growing demand from financial sponsors."
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.