Goldman Set to Raise Successor to $9.7B PE Fund

Goldman Sachs is reportedly seeking to raise its ninth private equity fund this year, following the closure of its $9.7 billion predecessor vehicle in 2022.

CEO David Solomon told investors at a Miami conference that the new vehicle would be “a significant fundraising,” but did not identify a target, according to Reuters.

He said that the bank was anticipating high margins for its asset and wealth management businesses, despite a dealmaking slowdown last year and losses in its consumer business, which contributed to a 24% drop in net profit to $8.52 billion.

West Street Capital Partners VIII, which closed in 2022, was only the firm’s third flagship private equity fundraise in the previous 15 years.

Goldman raised $20 billion for its largest fund under the strategy in 2007. In 2017, the firm launched a $7 billion West Street VII fund, and it had planned to raise $8 billion for Fund VIII.

The previous fund focused on enterprises with enterprise values ranging from $750 million to $2 billion in financial and business services, healthcare, consumer, technology, and climate change transition.