Goldman Sachs Asset Management is preparing to launch its largest private equity secondaries fund to date, aiming to surpass the $14.2bn raised for its predecessor, according to Bloomberg. 

The upcoming vehicle, the 10th in Goldman’s flagship series, is currently being marketed to a wide base of institutional investors.

The move reflects growing institutional demand for liquidity as exit activity remains subdued. University endowments and pension funds, in particular, have turned to the secondaries market to unlock capital tied up in long-dated private equity positions.

In 2023, global secondaries volume reached $160bn, with investors increasingly seeking to offload fund interests – often at discounts – due to delayed distributions and mounting portfolio constraints. Goldman’s initiative comes amid broader competition, as peers such as Lexington Partners target upwards of $25bn for their latest funds.

Although appetite for secondaries remains strong, some investors have raised concerns over valuation pressure and potential return compression as capital continues to flood the space.

General partners are also increasingly relying on continuation vehicles to extend asset hold periods, further fuelling secondary market deal flow. This trend, while occasionally controversial, has expanded the investable universe for secondaries specialists.

Goldman’s secondaries platform managed $44bn in assets by the end of 2024. Its previous fund attracted capital from institutional investors, high-net-worth individuals, and internal commitments from Goldman employees. The strategy is led by Harold Hope, Global Head of Secondaries, who views the segment as a natural progression in private equity’s evolution.

Institutional shifts are also playing a key role. Harvard University, with nearly 40% of its $53bn endowment in private equity, has been exploring secondaries sales. Yale has also reportedly evaluated options, driven by budgetary constraints and political scrutiny. Proposed US tax reforms targeting elite universities have added to the urgency for some institutions to rebalance portfolios.

Source: Bloomberg

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