Goldman Sachs Alternatives secured 75% of its $4bn (€3.44bn) target in an initial close for its latest mid-market infrastructure fund, backed mainly by investors from its previous vehicles in the series.
The fund manager said it has raised over $3bn at the first close of the West Street Infrastructure Partners V (WSIP V) in less than six months, securing commitments from investors including sovereign wealth funds, pension plans and insurers across North America, Asia, Europe and the Middle East.
Around 80% of WSIP V’s initial commitments were contributed by investors from prior vintages, the firm said.
WSIP IV, the predecessor in the series, held a final close on $4bn in October 2023 and has deployed capital across 11 mid-market infrastructure operating companies.
The latest fund, WSIP V, has marked its first investment with the acquisition of Canadian data centre platform QScale, which closed last month.
Philippe Camu, chairman and co-CIO of Infrastructure at Goldman Sachs Alternatives, said: “Our conviction is driven by our long-term track record in the space, as well as our ability to invest at attractive entry multiples and flexibility in exit options.
“Mid-market companies also often have significant untapped operational potential. Our active ownership mindset, time-tested value creation playbook and partnership with the Goldman Sachs value accelerator enables us to drive strong outcomes that benefit our investors.”
Tavis Cannell, global head and co-CIO of infrastructure at Goldman Sachs Alternatives, said: “The current market environment offers highly compelling opportunities across our focus sectors in both North America and Europe, with a robust pipeline of investments for WSIP V.
“We are incredibly grateful for the positive initial response from our investors, and deeply appreciate their continued trust in our franchise.”
Sydney McConathy, global head of infrastructure alternatives capital formation at Goldman Sachs Alternatives, said: “Investors are allocating more to infrastructure as a critical diversifier in their portfolios.
“Infrastructure’s ability to provide stability during periods of uncertainty is a key strength for the asset class and we are seeing that adoption reflected in the current market.”
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