Goldman Sachs Asset Management closes $5.2 billion growth fund

Goldman Sachs office in New York [Photo by Yonhap]

Goldman Sachs Asset Management closed its West Street Global Growth Partners fund, heralding its active investment in growth companies in the U.S., Europe and Asia, including South Korea.

The fund, which closed at $5.2 billion, is Goldman Sachs’ inaugural direct private markets fund dedicated to investing in high-growth businesses with strong market positioning, high growth rates and durable business models, the company said in a statement Tuesday.

The fund exceeded its initial fundraising target to close on $5.2 billion, including $3.7 billion of commitments from a diverse group of institutional and high net worth investors globally, alongside a significant commitment from Goldman Sachs and its employees. This makes it one of the largest first-time growth equity fund raised in history.

The fund seeks minority stakes in businesses with an average investment size of approximately $50 million and will invest across the lifecycle of the growth equity market. Building on the team’s deep global domain expertise, unique competitive position and extensive investment experience, the fund is targeting enterprise technology, financial technology, healthcare and consumer sectors.

“We believe the pace of innovation across enterprise technology, financial technology, healthcare, and consumer businesses shows no sign of abating, and we are excited to work closely with portfolio companies to navigate volatility and reach the next stages of growth,” said Julian Salisbury, chief investment officer for Asset & Wealth Management at Goldman Sachs. “Our global team, drawing on the firm’s extensive networks and deep relationships, is well-positioned to identify unique opportunities and create value for investors.”

The fund has already invested in many companies, including market intelligence software company AlphaSense, robotic warehouse systems provider Exotec, multi and hybrid cloud data security platform Fortanix and Chinese life sciences robotics solutions provider MegaRobo.

Goldman Sachs is expected to expand its buyout program for Korean growth companies as it has secured a pool of experts for the Korean market since last year.

Back in October last year, the Wall Street company hired M&A expert Lee Seung-june as its private equity head in South Korea.