Goldman Sachs Options has raised $13.1bn (£10.3bn) for its newest direct lending fund, its largest fundraise for that technique to date.
West Road Mortgage Companions V closed “considerably above goal”, with capital raised from present traders, new traders and “important commitments” from Goldman Sachs and its workers.
The fund – which focuses on senior direct loans to sponsor-backed companies – has already invested or dedicated $4bn throughout 37 portfolio corporations.
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Moreover, the asset supervisor has closed on greater than $7bn in large-cap senior direct lending managed accounts and $550m of co-investment autos alongside the most recent fund, bringing complete capital raised to greater than $20bn.
The asset supervisor highlighted a big alternative in senior direct lending, riven by an anticipated restoration in M&A exercise as non-public fairness dry powder is at an all-time excessive and sponsors search to return capital to traders.
“The marketplace for senior direct lending continues to profit from the rising demand from monetary sponsors,” mentioned James Reynolds, international head of direct lending for Goldman Sachs Options.
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“Whereas we count on the syndicated markets and personal credit score markets to proceed to co-exist, we’re seeing a rise in enticing alternatives for various lending sources that may present dimension, structural flexibility and certainty of execution to debtors.”
Stephanie Rader, international co-head of alternate options capital formation for Goldman Sachs Options, mentioned: “Senior direct lending has grow to be an more and more essential allocation for each institutional and personal wealth shoppers, and we imagine our platform is uniquely positioned to supply fascinating funding alternatives and apply our time-tested rigorous diligence and underwriting processes to ship enticing risk-adjusted returns throughout cycles.”
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Since 2008, Goldman Sachs has invested practically $70bn in large-cap senior direct lending globally.
