Goldman Sachs Asset Management (GSAM) has closed its value-add mid-market-focused infrastructure fund at $4bn (€3.8bn), reaching its target.
GSAM said the capital for the West Street Infrastructure Partners IV and related vehicles (WSIP IV) was raised from “a diverse group of institutional and high net worth investors”, alongside significant commitments from Goldman Sachs and its employees.
WSIP IV has already committed $2.3bn to eight companies, diversified by geography and sectors, including Synthica, a US developer and operator of organic renewable gas plants; Frøy ASA, a provider of transportation and support infrastructure to the Norwegian aquaculture sector; Verdalia, a developer and operator of European biomethane plants; GridStor, a developer and operator of utility-grade battery storage projects in the US; ImOn Communications, a fibre to the home broadband provider based in Iowa; and Adapteo, a provider of reusable modular space rental solutions in Northern Europe.
Philippe Camu, chairman of infrastructure at GSAM, said: “The WSIP IV fundraise reflects the strength, track record and breadth of our global infrastructure platform. We are grateful of the partnership from both our existing and new investors, and look forward to what is ahead for our franchise. We are excited about the performance of our portfolio to date, and remain committed to delivering consistent returns for our investors.”
Camus added that this latest fund “seeks to invest primarily in operating businesses with defensive, long-term cash flows, strong market positions, and in assets and services that are critical to society”.
Scott Lebovitz, co-head of infrastructure at GSAM, said: “The infrastructure asset class is positioned to benefit from some of the most exciting secular tailwinds associated with decarbonisation, digitisation, de-globalisation and demographics, each of which requires very significant mobilisation of private capital.
”In the current economic environment, a disciplined focus on risk, and managers’ value creation capabilities will act as key performance differentiators, where our platform is very well positioned. Many investors remain under-allocated to infrastructure, and we are privileged to have been entrusted by both existing investors and new clients as stewards of their capital.”
This close follows the recent close of Goldman Sachs’ inaugural infrastructure secondaries fund, Vintage Infrastructure Partners I, which closed in September 2023 with $1bn of commitments.
To read the latest edition of the latest IPE Real Assets magazine click here.