Monday, April 13, 2009

Goldman Sachs Starts $5.5 Billion Private Equity Fund

. Monday, April 13, 2009

By stockOzone team

Goldman Sachs Group Inc. (NYSE: GS), said it raised its fifth dedicated private equity secondaries fund, GS Vintage Fund V, with approximately $5.5 billion in capital commitments.

Limited partners in GS Vintage Fund V include existing and new institutional and private investors throughout the Americas, Europe, Asia and Australia, the company said.

GS Vintage Fund V will focus primarily on acquiring portfolios of private equity assets, including limited partnership interests in private equity funds, as well as providing unique liquidity and capital solutions to both limited partners and general partners around the world. The GS Vintage Funds evaluate opportunities ranging from $1 million to over $1 billion in size, across all private equity strategies and geographies, the company said.

The Journal reports the market for such limited-partnership interests has become a hot sector of the private-equity market, as some pension funds and endowments scramble to reduce their exposure to the sector. Sales of such interests are occurring at discounted prices of 50% to 70% or more from face value, the Journal reports, citing private-equity executives.

One reason for the discount is that such partnership interests often include the obligation to put up more cash for future investments, according to the Journal.

Disclosure: Author does not own any of the stocks discussed here.

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