Enhancing its ability to secure deals worldwide, Goldman Sachs Group Inc is planning to raise $8 billion in its second buyout fund since the 2008 financial crisis, according to two people privy of the matter.
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The Wall Street heavyweight will kick off the fundraising next week via its private equity arm West Street Capital Partners, said the people.
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The bank is undeterred by the fast-spreading coronavirus that is casting a shadow over the global economy as it is mainly targeting offshore, non-Chinese prospective investors, said one of the people.
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The new fund, substantially smaller than Goldman's biggest fund of $20 billion in 2007, underscored its commitment to the private equity business. Many banks, including Citigroup Inc and JPMorgan Chase & Co, have spun out or divested their private equity arms in recent years following the adoption of the Volcker Rule, which limits banks from investing their own balance sheets in funds.
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Goldman's new fund will focus on deals where it gets majority control, with the goal of deploying 60% of the capital in America, said the first person. It also plans to make about 25 investments in various sectors, with the deal size ranging between $150 and $600 million.
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Like its last fund, the new fund will seek capital from both institutional investors and the bank's own employees, said the person.
