Goldman Sachs AM Raises $20B for Direct Lending 

Goldman Sachs Alternatives announced the final close of West Street Loan Partners V at $13.1 billion, the latest in a series of flagship large-cap senior direct lending vehicles. 

The fundraise exceeded its target and represents the largest Loan Partners fund raised since the strategy’s launch in 2008. The funds were raised from existing re-up investors, new investors, and substantial pledges from Goldman Sachs and its employees. 

To date, Loan Partners V, which is managed by the private credit business within Goldman Sachs Alternatives, has already invested or committed $4 billion across 37 portfolio companies. 

“The market for senior direct lending continues to benefit from the growing demand from financial sponsors. While we expect the syndicated markets and private credit markets to continue to co-exist, we are seeing an increase in attractive opportunities for alternative lending sources that can provide size, structural flexibility and certainty of execution to borrowers,” said James Reynolds, global head of direct lending for Goldman Sachs Alternatives. 

Goldman Sachs Alternatives also announced it has closed on more than $7 billion in large-cap senior direct lending managed accounts and $550 million of co-investment vehicles alongside Loan Partners V, bringing total capital raised to more than $20 billion. 

Goldman executives have been optimistic about the alternative credit business’s overall development prospects and have made advances into real estate credit and mezzanine finance. Goldman Sachs’ private lending division has grown to $185 billion since its establishment in 1996.    

Earlier this month, the $400 billion Goldman Sachs Alternatives arm completed the final close of West Street Real Estate Credit Partners IV and related vehicles with $7 billion in assets. Since the global financial crisis, Goldman Sachs has invested more than $20 billion in high yield real estate lending worldwide.