Goldman Sachs AM Initiates Fundraising for New Fund
Goldman Sachs Asset Management has begun early-stage discussions with investors to raise at least $10 billion for its next global direct lending vehicle, according to Private Equity Wire. The fund, named West Street Loan Partners VI, follows its predecessor which closed on more than $13 billion in 2024.
Fund Investment Focus
West Street Loan Partners VI will concentrate on lending to companies across North America, Europe, and Australia, primarily targeting businesses that generate more than $100 million in EBITDA. At least 80% of the portfolio will be allocated to senior loan positions, as per details from the sources cited in the report.
Expected Returns and Strategy
The fund’s strategy is projected to deliver returns of approximately 10%–12% on a leveraged basis and 6%–7% unleveraged. This approach comes amid heightened investor caution in the $1.8 trillion private credit sector, according to the same sources.
Background on Private Credit
As a widely-known context, private credit has emerged as a significant financing option for companies, often filling gaps left by traditional banking; in this case, Goldman Sachs is pursuing expansion in this area despite market challenges, according to Private Equity Wire.
