Goldman Sachs Asset Management Raises $7B For New PE Secondaries Fund

Jun 15 2017 | 11:43pm ET

Goldman Sachs Asset Management (GSAM) has reportedly raised more than $7 billion for a new private equity secondaries fund, significantly exceeding its $5 billion target. 

The new fund, named Vintage VII, purchases secondhand stakes in private equity funds and will focus on buyout and distressed strategies in developed markets, according to a Reuters article citing two unidentified individuals familiar with the matter. It held previous closes in June and August of last year.

GSAM's previous private equity secondaries fund raised $5.8 billion in November 2013 and generated a net IRR of 14.4%, Reuters said. Investors are typically drawn to private equity secondaries vehicles because of attractive risk profiles, diversification benefits and, for some, the mitigation of the J-curve effect. 

GSAM is the asset management arm of Goldman Sachs, which supervises more than $1.38 trillion in assets as of September 30, 2016.  The unit offers investment strategies across a broad range of asset classes to institutional and individual clients globally. While the division’s investment outsourcing solutions business represented $93.5 billion in client assets as of December 31, 2016.

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