Goldman Sachs Asset Management’s Mezzanine Debt Funds Continues to Draw in Major Asset Owners

Posted on 01/18/2023

Goldman Sachs Asset Management (GSAM), a unit of Goldman Sachs Group Inc., closed West Street Mezzanine Fund VIII on $11.7 billion of equity, with a total fund size of $15.2 billion including expected long-term financing. With the “West Street” branding, Goldman Sachs remains in compliance with a 2008 global post-crisis rule that prevents private equity funds from bearing the parent bank’s name.

To date, the fund has invested or committed about $4 billion across 13 portfolio companies, Goldman Sachs Asset Management announced in a January 12, 2023 news release. Managed by GSAM’s private credit business led by James Reynolds and Kevin Sterling, managing directors and global co-heads of private credit, West Street Mezzanine Fund VIII focuses 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.

Pensions and Sovereign Wealth Funds
CalPERS is one of the larger investors in the fund, agreeing to commit US$ 2 billion to West Street Mezzanine Partners VIII, US$ 600 million to West Street Mezzanine Partners VIII Co-Investment Partners, and US$ 500 million for a pro rata co-investment to West Street Mezzanine Partners VIII. Singapore’s GIC Private Limited is an investor in West Street Mezzanine Partners VIII Offshore, L.P.

The last private credit fund called GS Mezzanine Partners VII raised US$ 9.9 billion in 2018.

West Street Capital Partners VIII – Private Equity
In September 2022, GSAM held the final close of West Street Capital Partners VIII, which closed at $9.7 billion.

Keywords: California Public Employees Retirement System.

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