Goldman Sachs Alternatives has secured over $7bn (€6.5bn) in capital commitments for its latest real estate credit strategies.
The investment manager said the capital raised by West Street Real Estate Credit Partners IV and its related vehicles, at close, surpassed its target and represents the largest to date in the fund series.
The fundraising secured capital from new investors, increased allocations from existing investors, and a significant investment from Goldman Sachs, with participation from its employees as well.
Goldman Sachs said the strategy attracted a diverse group of institutional investors, including sovereign wealth funds, insurance companies, and both US and international pension plans.
It also secured significant commitments from high-net-worth individuals through family offices, Goldman Sachs private wealth management business, and other wealth management channels.
Goldman Sachs said Partners IV, which will be the first fund in the series to make disclosures under the Article 8 provisions of the EU Sustainable Finance Disclosure Regulation, has already committed over $1.8bn across eight investments globally.
Jim Garman, global head of real estate at Goldman Sachs Alternatives, said: “Consistent with our thirty-year history investing through multiple cycles, our real estate platform is designed to be dynamic in the face of changing conditions.
“While our flagship equity strategies provide clients with access to differentiated opportunities across sectors and regions, with specific focus on assets benefiting from trends in technology, demographics and sustainability, credit has always been a critically important component of our product mix, particularly during periods of capital markets disruption.”
Richard Spencer, CIO for real estate credit at Goldman Sachs Alternatives, said: “The market for real estate credit is characterised by a material and growing supply and demand imbalance. We believe this is creating attractive opportunities for alternative lending sources that can provide size and certainty of execution to borrowers.
“With the close of one of the largest pools of capital dedicated to this opportunity, we are excited to continue the real estate credit partners programme’s long history of providing tailored and creative financing solutions to the world’s leading developers and owners of high-quality real estate in the US, Europe and Australia.”
Jeff Fine, global co-head of alternatives capital formation at Goldman Sachs Alternatives, said: “As a solutions provider to the world’s most sophisticated investors, our real estate credit offering has become an increasingly important allocation for institutional and wealth clients alike, evidenced by the fund’s significantly expanded investor base and increased commitments from existing clients.
“For investors seeking attractive risk-adjusted returns across cycles, real estate credit is an excellent diversifier to private credit and real assets exposures. We are grateful for our clients’ partnership and trust in our differentiated approach.”
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