Goldman’s Alts Arm Raises $7B for Real Estate Credit Fund
Goldman Sachs’ alternative assets arm has secured more than $7 billion for its real estate credit strategies, following its most recent $3.6 billion raise.
The firm announced the final close of West Street Real Estate Credit Partners IV and related vehicles. The asset manager stated that its fundraising efforts exceeded expectations and were the largest in its series to date.
The capital was raised from new and existing investors, as well as “significant investments” made by Goldman Sachs and its staff. The fund also received investments from family offices, Goldman Sachs Private Wealth Management, and third-party wealth channels.
The firm noted that there is “a significant opportunity set in real estate credit driven by major dislocations in real estate markets globally, creating attractive opportunities for alternative lending sources that can provide size and certainty of execution to borrowers.”
The fund has already begun investing, contributing nearly $1.8 billion to eight global investments to date.
“The market for real estate credit is characterized by a material and growing supply and demand imbalance,” said Richard Spencer, CIO for real estate credit at Goldman Sachs Alternatives. “We believe this is creating attractive opportunities for alternative lending sources that can provide size and certainty of execution to borrowers.”
Goldman Sachs manages over $450 billion in alternative assets. The firm’s real estate division has invested over $60 billion since 2012.
Hear from leaders in real estate financing, including Monroe Capital managing director, co-head, technology finance; head, venture debt Mark Solovy at the Connect Money: Real Assets Capital Raise event on June 5 in Chicago at the W City Center.
