New York, NY – May 30, 2024 – Banking giant Goldman Sachs Group Inc. announced the establishment of its largest-ever direct corporate lending fund, totaling $21 billion. The new fund, dubbed Goldman Sachs Loan Partners V, strengthens Goldman Sachs’ position in the lucrative private credit sector, which involves direct lending to companies outside traditional banking systems.
The fund aims to more than double Goldman Sachs’ total private credit assets to $300 billion within the next five years. The company targets a broad range of investors, including institutional investors, wealthy individuals, and sovereign wealth funds.
Goldman Sachs boasts 30 years of experience in private credit and believes this expertise gives them a competitive edge over other market participants. The company seeks partnerships with other asset managers to navigate the increasing complexity of the private credit landscape.
Rising interest rates are expected to lead to greater differentiation among the performance of various money managers. However, Goldman Sachs is confident that its experience and investment strength will allow it to achieve superior returns for its investors.
Key Takeaways:
- Goldman Sachs strengthens its position in the growing private credit market.
- The new $21 billion fund is the largest in Goldman Sachs history, reflecting their confidence in the market.
- The company targets a wide range of investors, including institutions, wealthy individuals, and sovereign wealth funds.
- Goldman Sachs boasts a competitive advantage with its 30-year track record in private credit.
- The private credit market is expected to become more challenging, but Goldman Sachs feels well-prepared for success.
Sources:
