Followers | 680 |
Posts | 141062 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Friday, November 20, 2020 4:07:10 PM
By: Bloomberg | November 18, 2020
(Bloomberg) -- Goldman Sachs Group Inc. raised $10.3 billion for a new fund that will primarily buy private equity stakes as interest in such deals intensifies.
Harold Hope, Goldman’s global head of secondary investing, said the fund is his group’s largest and includes about $250 million of internal capital. It will be used to acquire holdings owned by existing fund backers and stakes that buyout firms may want to spin off into new vehicles, an area that Hope calls “non-traditional” deals.
“We’re allowing existing private equity managers to have another go around at that asset, and not have to sell it to someone else before they are ready,” Hope, who joined Goldman Sachs in 1999, said in an interview.
Wall Street firms are building secondaries businesses as investors seek liquidity and to mitigate the risk of traditional buyout funds. Brookfield Asset Management Inc. and TPG are among firms pushing into the market with such transactions gaining traction even as deal volume has slid in the pandemic. There were a record $85 billion in secondaries deals last year, according to research from Coller Capital.
In secondaries, firms buy portfolios of funds from investors who need cash or want to rebalance their holdings. Private equity managers also turn to the market to hold onto a company while providing an exit for investors.
Goldman’s new fund is the firm’s eighth in this business. It’s 43% larger than the $7.2 billion pool raised in 2016. The firm has committed almost $40 billion in its secondaries strategies since the group’s founding.
The New York-based firm invests across fund strategies, including buyout, growth, venture and infrastructure. It will mostly target funds focused on the U.S. and Europe, with the remainder in emerging markets and parts of Asia. As much as 10% of the fund will focus on real estate, according to Hope.
In the second quarter, Goldman’s secondaries group took advantage of dislocations spurred by the Covid-19 crisis to invest $900 million of capital from the fund, up 40% from the year-earlier period, Hope said. The firm has been buying defensive assets such as technology, infrastructure and health care companies -- sectors that have bounced back, showing their stability, he said.
The fund is about 20% invested into deals. In November, Goldman, which started its secondaries business in 1998, led investors in a transaction that enabled Clearlake Capital to shift Ivanti, a provider of IT management and security software solutions, into a new separate fund. The firm led a similar deal in July that let Riverstone Holdings LLC move renewable energy firm Enviva Holdings into a new vehicle.
Hope said he expects more players to do more transactions.
“The reason you’re seeing larger and larger funds is really because the secondary market has grown so quickly and it’s so concentrated among a number of established buyers,” Hope said. Given the deal volume, “the selling opportunity is greater than the capital there is to buy it.”
(Updates sixth paragraph with details on Goldman’s backing of secondaries. An earlier version of the story corrected the spelling of a company name in the ninth paragraph.)
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GS News
- Transcendia Announces Significant New Capital Investment to Support Next Phase of Growth and Value Creation Initiatives • PR Newswire (US) • 05/02/2024 04:00:00 PM
- Alphabet CEO’s Billion-Dollar Wealth, Microsoft’s $1.7B Indonesia Investment, and More News • IH Market News • 04/30/2024 11:58:40 AM
- BHP Bids $38.8 Billion for Anglo American; Biden Unveils Historic Micron Technology Deal, and More News • IH Market News • 04/25/2024 11:48:40 AM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Tether’s Division Restructure, Aptos-Microsoft DeFi Collaboration, and More Crypto News • IH Market News • 04/18/2024 05:59:13 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- Analysts Sound Alarm on Fourth BTC Halving, Kraken Wallet Launch, and More Crypto News • IH Market News • 04/17/2024 05:45:22 PM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Dow Looks To Snap Six-Day Losing Streak As UnitedHealth Surges • IH Market News • 04/16/2024 01:09:47 PM
- U.S. Index Futures Signal Mixed Trading, Oil Prices Dip • IH Market News • 04/16/2024 11:19:33 AM
- U.S. Stocks Extend Sell-Off As Treasury Yields Surge After Retail Sales Data • IH Market News • 04/15/2024 08:38:32 PM
- Goldman Sachs’ Q1 net revenue totals $14.21B • IH Market News • 04/15/2024 06:36:16 PM
- Upbeat Earnings, Retail Sales Data May Generate Buying Interest • IH Market News • 04/15/2024 01:10:16 PM
- U.S. Index Futures Surge after Dow Jones’ Worst Week, Oil Prices Dip • IH Market News • 04/15/2024 11:08:21 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Crypto: Morgan Stanley and UBS Compete for Leadership in Bitcoin ETFs, Risks in Ethena’s USDe Strategy, and More • IH Market News • 04/05/2024 06:15:55 PM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Crypto: Paradigm Seeks Investment for New Web3 Fund, KBW Initiates Cautious Coverage on Robinhood, and Other Updates • IH Market News • 04/03/2024 02:21:12 PM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- FedEx Soars 13% with Profits Above Forecasts, Nike Hit by China Slowdown, and Latest News • IH Market News • 03/22/2024 01:07:53 PM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM