Goldman Sachs Alternatives has raised a total of more than $20 billion for its private credit strategy, including the biggest pool of capital so far for the firm’s senior direct lending efforts.
The company in a statement today said it has closed its large-cap senior direct lending vehicle West Street Loan Partners V at $13.1 billion, which includes LP equity commitments and long-term asset financing, as well as Goldman Sachs’ own balance sheet commitment.
The firm said the fundraise was significantly above target, and is the largest Loan Partners fund raised since the inception of the strategy in 2008. The capital was raised from existing re-up investors, new investors and significant commitments from Goldman Sachs and employees, the statement added.
The firm also closed more than $7 billion in large-cap senior direct lending managed accounts and $550 million of co-investment vehicles alongside Loan Partners V, bringing the total capital raised to over $20 billion. Institutional investors in the strategy include US and international pension plans, insurance companies and sovereign wealth funds. Investors from Goldman Sachs Private Wealth Management, family offices and third-party wealth channels also made commitments.
Goldman Sachs said that as sponsors seek to return capital to investors amid historically high levels of private equity dry powder, there are opportunities for alternative direct lending sources that can provide size, structural flexibility and certainty of execution to borrowers.
“The market for senior direct lending continues to benefit from the growing demand from financial sponsors”, James Reynolds, global head of direct lending for Goldman Sachs Alternatives, said — adding that while the bank expects the syndicated and private credit markets will continue to co-exist, it is seeing an increase in opportunities for alternative lending sources that can provide size, structural flexibility and certainty of execution to borrowers.
The fund has already begun investing, and has committed $4 billion across 37 portfolio companies.
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