Goldman Sachs Raises $15B for Two Secondaries Strategies

Goldman Sachs’ asset management arm raised more than $15 billion across two funds for investors to make secondary investments in existing private equity ventures.

The Vintage IX fund, the ninth iteration of the firm’s private equity secondaries strategy, raised $14.2 billion, exceeding its target of $12 billion, from institutional investors, wealthy clients and bank employees, according to the firm.

The new fund dwarfs the firm’s already spectacular $10.3 billion Vintage VIII fund, which it raised at the end of 2020.

The debut Vintage Infrastructure Partners, which capitalizes on 15 years of infrastructure secondaries investment within the current Vintage platform, raised about $1 billion.

“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,” said Harold Hope, global head of secondaries at Goldman Sachs Asset Management.

The team’s sourcing of infrastructure secondaries grew by over 40% between 2021 and 2022 and grew to a record total in the first half of 2023, the firm said.

Goldman Sachs also raised committed co-investment capital. As of June 30, the firm’s secondaries capabilities had $45 billion in assets under management.

According to PitchBook, secondaries remain attractive in private markets, with fundraising in the first half of 2023 hitting $34.9 billion, or nearly 64% of the annual amount in 2022.

For example, Blackstone raised $22.2 billion for its Blackstone Strategic Partners Fund IX, which closed in January.