Goldman Sachs AM Closes $15.2bn Mezzanine Fund

Goldman Sachs Asset Management announced the final close of West Street Mezzanine Partners VIII, the latest in a series of flagship mezzanine vehicles. The Fund closed on $11.7bn of equity, with a total fund size of $15.2bn inclusive of expected long-term asset financing.

The Fund is managed by the Private Credit business within Goldman Sachs Asset Management, with a global team of over 150 experienced credit investors drawing on the wider platform and resources of Goldman Sachs to source investments and add value to portfolio companies.

Julian Salisbury, Chief Investment Officer for Asset & Wealth Management at Goldman Sachs, said: “We are deeply appreciative of the support from existing and new limited partners. The demand is a testament to our team’s experience and track record navigating market cycles in mezzanine debt over almost three decades.

Goldman Sachs raised its first mezzanine fund in 1996 and since then has consistently been one of the largest providers of mezzanine financing globally, pioneering the development of the investment strategy. The firm’s investment teams have navigated multiple market cycles and environments, developing unique platform longevity and a strong track record.

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Goldman Sachs has raised over $160 billion of commitments for investments in private credit over the past 26 years, with over $53 billion invested in mezzanine strategies.  Today, the firm’s global presence, experienced team and ability to execute at scale often make it a first-choice partner for companies and financial sponsors seeking mezzanine financing. This gives the firm the ability to source proprietary investments and deliver differentiated performance for clients.

The fund will continue its focus on direct origination of junior fixed income investments in high-quality, private equity-backed businesses, leveraging the firm’s deep relationships with leading financial sponsors. To date, Mezzanine Partners VIII has invested or committed approximately $4 billion across 13 portfolio companies.

“Investors are increasingly focused on income generation and capital preservation in a higher inflation and higher interest rate environment. Given our team’s global presence, relationships with financial sponsors and depth of credit investment experience, we are confident we can continue to directly source attractive private credit investments in high quality companies with predictable cashflows and stable business models,” Salisbury said.

Salisbury rounds off: “We believe our differentiated approach allows us to navigate the volatile current market conditions and position ourselves to best identify investment opportunities that drive attractive risk-adjusted returns for our investors.”

Source: Press Release

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