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Goldman Sachs unveils new semi-liquid private credit fund amid private wealth push

Goldman Sachs expands European private credit strategies to wealthy individual investors

Goldman Sachs has become the latest asset manager to climb on the semi-liquid fund bandwagon to give individual investors access to illiquid assets.

Its alternative asset management arm on Wednesday announced the launch of an open-ended, semi-liquid fund that focuses on European private credit investments.

The fund, dubbed GSEC, will invest in senior secured debt originated to medium and large-sized borrowers in “non-cyclical, recession-resilient industries,” according to a company statement.

Goldman Sachs said its new fund, which already received more than €550 million (about $595 million) in equity, has delivered its initial distributions to investors.

Semi-liquid funds are having a moment, as wealthy individual investors become increasingly significant to the fundraising efforts of private market asset managers.

The semi-liquid fund structure typically offers investors periodic distributions on a quarterly or semi-annual basis, making private markets assets more accessible to investors who may prefer not to lock up their capital for a long period, according to Hilary Wiek, a senior strategist at PitchBook covering fund strategies.

“These retail investors are getting some regular cash flow back from these vehicles, instead of just tying up their money for 10-plus years like they would if they went into a normal closed-end fund,” Wiek said.

She added that a majority of semi-liquid funds invest in asset classes that can offer steady income streams, such as private credit, real estate and real assets, as more retail investors are looking to take advantage of the higher interest rate environment by investing in high-yield assets.

In the past few quarters, a growing slate of fund managers formed similar vehicles to give retail investors access to private market strategies. For example, this month The Carlyle Group unveiled a semi-liquid fund to make its European private credit strategies accessible to individual investors.

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