Goldman Sachs Asset Management has begun early-stage discussions with investors to raise at least $10 billion for its next global direct lending vehicle, known as West Street Loan Partners VI, according to a report by Bloomberg cited in Private Equity Wire. The fund will focus on lending to companies across North America, Europe, and Australia, primarily targeting businesses that generate more than $100 million in EBITDA.
Fund Overview
The new fund, West Street Loan Partners VI, is GSAM’s latest effort in the private credit space, building on its predecessor which closed on more than $13 billion in 2024, as per the same report. This initiative occurs against the backdrop of heightened investor caution in the $1.8 trillion private credit sector, a widely-known trend reflecting broader market dynamics in alternative investments. The fund’s strategy includes allocating at least 80% of its portfolio to senior loan positions.
Investment Strategy
West Street Loan Partners VI aims to deliver returns of approximately 10%–12% on a leveraged basis and 6%–7% unleveraged, according to sources familiar with the matter as reported in Private Equity Wire. This approach underscores the fund’s emphasis on direct lending, with a focus on senior loans to mitigate risks in a cautious market environment. GSAM reportedly declined to comment on these details.
Market and Predecessor Context
The predecessor fund’s closure on more than $13 billion in 2024 highlights GSAM’s established presence in private credit, according to the Bloomberg report cited by Private Equity Wire. While private credit has grown significantly as an asset class, current investor caution stems from economic uncertainties, though this is a widely-known factor influencing fundraising efforts.
