Goldman Sachs has raised $6.7bn (€5.5bn) for its third real estate credit investment fund at final close.
Broad Street Real Estate Credit Partners III is managed by the real estate group in Goldman Sachs’ Merchant Banking Division (MBD).
The previous fund raised over $4bn in 2014 to invest in senior and mezzanine debt.
MBD’s real estate group has raised over $15bn of commitments for investing in real estate credit since 2008.
Alan Kava, the New York-based co-head of MBD’s real estate group, said: “We are really pleased with the overwhelming support of our investors. It is a testament to their confidence in our strategy, talented team and successful track record in sourcing and executing attractive real estate credit investments.”
Jim Garman, the London-based co-head of MBD’s real estate group, said: “We successfully added European-based investments during the prior fund and we will continue to leverage our scale and our deep understanding of the various local real estate markets to provide customised solutions to borrowers across Europe and North America.”
Peter Weidman, MBD’s global head of real estate credit, said that Real Estate Credit Partners III will pursue the same investment strategy that has proven so successful in prior funds – focusing on direct originations of both senior and mezzanine loans secured by high quality assets in major markets.
“The fund’s scale and flexibility allows us to be an originate-and-hold lender, providing highly customised loans from $100m to in excess of $500m throughout the US and Europe,” Weidman said.