Goldman Sachs Raises Record-Breaking Loan Partners Fund, Largest Since 2008

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Goldman Sachs Alternatives Raises Over $20 Billion for Senior Direct Lending Strategy

Goldman Sachs Alternatives has successfully raised over $20 billion for senior direct lending, marking a significant milestone for the firm. The fundraising effort included $13.1 billion in the West Street Loan Partners V fund, $7 billion in large-cap senior direct lending managed accounts, and $550 million in co-investment vehicles.

According to a press release issued by Goldman Sachs Alternatives, the fundraise exceeded expectations and is the largest Loan Partners fund raised since the strategy was established in 2008. The capital was sourced from a mix of new and existing investors, including U.S. and international pension plans, insurance companies, sovereign wealth funds, family offices, third-party wealth channels, and Goldman Sachs Private Wealth Management investors.

The fund has already deployed $4 billion across 37 portfolio companies and will continue to target high-quality, private equity-backed global businesses. The current market environment, characterized by a surge in mergers and acquisitions (M&A) activity and high levels of private equity dry powder, presents attractive opportunities for alternative direct lending sources.

Goldman Sachs CEO David Solomon highlighted the robust capital markets activity during an April earnings call, emphasizing the strategic decisions that CEOs need to make and the need for companies to raise capital. The M&A landscape has been particularly active, with major deals worth at least $10 billion more than doubling in the first quarter.

Similarly, Citigroup has observed a renewed interest in M&A among European startups, driven by a combination of improved operational efficiency, profit margins, and optimistic growth prospects. Valuations have also increased, prompting a more aggressive pursuit of M&A opportunities.

Overall, the successful fundraising by Goldman Sachs Alternatives reflects the strong demand for senior direct lending opportunities in the current market environment, driven by the need for capital and strategic transactions among businesses of all sizes.

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