Goldman Sachs Group Inc. seeks investors for the fund
A major U.S. bank Goldman Sachs Group Inc. has announced its intention to attract $8 billion. These funds will be used to organize a private equity fund, which will strengthen the company’s position in the global market and open more dealing opportunities. The investment will be made through the joint stock company Goldman Sachs.
The new fund is the second institution of the bank after the financial crisis, which was in 2008. The management of Goldman plans to conduct the first transaction by the end of the month, which will guarantee the fund’s ability to overcome the minimum threshold and actively invest in various projects.
The first fund of the bank in 2017 managed to attract $7 billion, but the new organization will go a slightly different way. In this case, the capital will be bought not only from institutional investors, but also from employees of Goldman Sachs itself.
The fund’s activity will be based on instruments, which allows controlling many banks. The capital share of 60% will be located in the USA. In addition, Goldman plans to make 25 investments in different market segments. The total amount of investments will be 150-600 million dollars.
Many questions about the implementation of the plan of Goldman Sachs bank are caused by the coronavirus epidemic, which may change economic forecasts and restructure a number of operations in global markets. However, the management of the institution is sure that the disease will not prevent them from finding investors and launching the project. In addition, the company is primarily focused on offshore investors, and believes that they will not necessarily be Chinese businessmen.
Unlike Citigroup Inc. and JPMorgan Chase&Co, Goldman Sachs is not going to change direction, and will continue to work in the private equity segment. Volker’s rule has forced many banks to concentrate on private equity, but Goldman feels quite comfortable.
According to the law, financial institutions are not allowed to invest their own assets in funds. In addition, current requirements limit the interaction of banks with hedge funds and organizations specializing in direct investments.
Despite this, private equity firms raise large amounts of money in different parts of the world. A striking example is the American company Blackstone Group Inc. Last year it managed to get $26 billion to organize a buyout fund. This amount was a record in this segment.
Goldman Sachs Group Inc is one of the largest conglomerates, which in addition to investing, deals with securities and provides a wide range of financial services. The company’s head office is located in New York.