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Goldman Sachs‘ asset management division successfully closed two funds and subsequently raised a total of over $15B. These funds are specifically tailored for secondary investments in present private equity (PE) deals.

  • Superior Vintage: The Vintage IX fund didn’t just meet its initial target of $12B, it pulled in $14.2B instead. Not only that, but they raised another $1B for their Vintage Infrastructure Partners vehicle. This totals $15.2B in assets under Goldman Sachs’ command.
  • Legacy: The Vintage Funds program, the parent of both Vintage IX and Vintage Infrastructure Partners, is not a newcomer. It has been operating since 1998 and now manages assets exceeding $45B.
  • The Growth: Additionally, Vintage IX is almost 38% larger than its predecessor, Vintage VIII, which secured a respectable $10.3B in 2020.
  • Who’s Onboard: The support for Vintage IX extends beyond institutional investors. Intriguingly, Goldman Sachs’ very own employees, along with its affluent clients, have hopped onto the investment train.
  • Liquidity Lifesavers: Harold Hope, the Head of Secondaries at Goldman Sachs Asset Management, offers insight into their strategy. They operate as liquidity rescue teams, providing an exit route for fund investors looking to cash out early. They evaluate your assets, settle on a price, and complete the buyout.
  • Rolling Continuation Vehicles: Goldman’s asset management division is not limiting itself to offering liquidity. They’re also interested in investing in “continuation vehicles”, ingenious tools that allow PE firms to transition old investments into new funds.
  • The Numbers: In 2023, secondary funds took an average of 19.1 months to close, compared to 13.5 months in 2022. However, this slowdown is likely due to a dearth of large funds, not a downward trend.
  • To Add to That: The value of private equity deals has plummeted significantly, taking a 44% drop to $302.7 billion during the first eight months of 2023. As per data from S&P Global Market Intelligence, this is the lowest level for the same period since 2019.

Investors, who’ve significantly committed their portfolios to PE investments, are navigating new investments with caution. Hence, raising funds is becoming challenging.

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