Goldman Sachs AM Seeks $13bn for New Mezzanine Fund
Goldman Sachs Asset Management is planning to raise approximately $13bn for its latest mezzanine debt fund, GS Mezzanine Partners IX, which will target private equity-backed companies across North America and Europe, according to Private Equity Wire. Preliminary discussions with potential investors have already begun ahead of a formal launch later this year.
Fund Strategy and Objectives
The fund will provide subordinated financing, positioned below senior loans but above equity, with the goal of delivering net returns of 11%–13% using leverage, or 8%–9% on an unleveraged basis. This strategy focuses on opportunities arising from credit market dislocations, such as those driven by artificial intelligence disruptions in the software sector, which have triggered waves of redemptions and increased trading of software-linked debt in the $1.8tn private credit market.
Goldman Sachs’ Role in Private Credit
Goldman Sachs has maintained a long-standing presence in private credit, with GS Mezzanine Partners IX marking its ninth mezzanine fund since the strategy’s debut in 1996. A representative for Goldman Sachs reportedly declined to comment on the fund, as noted in the report.
Market Context and Investor Interest
Opportunistic investors are increasingly drawn to these credit market dislocations, particularly in the context of the broader private credit market. As mezzanine debt is a widely-known financing tool that bridges debt and equity, it aligns with current market dynamics influenced by sector-specific pressures like those in software.
