New York, NY, USA. May 2, 2022. Editorial Use Only, 3D CGI. Goldman Sachs Signage Logo on Top of Glass Building. Workplace of Investment Banking Company Office Headquarters.
The US-based Goldman Sachs Asset Management (GSAM) has announced the final close of its private market secondaries funds, Vintage IX, and Vintage Infrastructure Partners.
Vintage IX, the ninth iteration of Goldman Sachs’ diversified private equity secondaries strategy and the largest offering among the Vintage Funds, closed above its fundraising target, with $14.2 billion of equity commitments from a global and diverse group of institutional and high net worth investors and meaningful commitment from Goldman Sachs employees. The firm’s predecessor fund, Vintage VIII, closed on $10.3 billion of commitments in 2020.
The Vintage Funds, which provide liquidity solutions to private market limited partner investors and general partner fund managers, represent a flagship of Goldman Sachs’ alternatives franchise, with leadership in the secondaries space since 1998 and over $45 billion of assets under management as of June 30, 2023.
Appreciating the support from both existing and new investors, Harold Hope, global head of Secondaries at GSAM, said that in addition to this capital, GSAM also raised committed co-investment capital which gives the company additional flexibility to pursue a diverse opportunity set. With this capital GSAM is committed to delivering on consistent and differentiated private equity returns for our investors, he said.
“We are at an inflection point in the secondaries market. Today there are more ways to derive value from secondaries than ever before, and we believe the long-term winners in this market will be buyers that can navigate it as whole and weigh relative value across transaction types and structures,” Hope said.
High Demand for Liquidity
The success of the fundraise reflects the recognition of the team’s 25-year track record, as well as the attractive market opportunity in secondaries – the demand for liquidity is high with many global institutions over-allocated to private markets or in search of ways to generate liquidity within their portfolios.
The secondaries team is differentiated by its longstanding experience executing both traditional LP secondary transactions and non-traditional secondary solutions (including continuation vehicles and preferred equity), as well as its ability to leverage the broader resources of Goldman Sachs to source, evaluate, and execute these investments.
Vintage Infrastructure Partners, which builds on 15 years of investing in infrastructure secondaries within the existing Vintage platform, closed approximately $1 billion of equity commitments – making it Goldman Sachs’ inaugural commingled fund dedicated to investing in the expanding infrastructure secondaries market.
“Vintage Infrastructure Partners is a natural extension of our platform, and we are encouraged by the tailwinds that continue to drive growth and opportunity in that part of the market. With dedicated infrastructure secondary capital, we hope to be a more complete solutions provider to investors and managers looking for liquidity options across the entire range of their private market investments,” Hope added.
GSAM delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors, and individuals. Goldman Sachs oversees more than $2.7 trillion in assets under supervision as of 30 June 2023.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. In public markets, Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity, and multi-asset solutions.
It is one of the largest managers of private capital globally and invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate, infrastructure, and sustainability.