Goldman Sachs (NYSE:GS) Asset Management (GSAM) has successfully raised $14.2 billion for a new investment vehicle, Vintage IX, designed to acquire stakes in private equity funds. The firm announced on Wednesday that the fund has secured commitments from institutional investors, high-net worth individuals, and Goldman Sachs employees.
The secondary market is currently dominated by investors readjusting their exposure to private equity in a challenging macroeconomic environment. However, the emergence of continuation vehicles, which enable buyout firms to maintain business ownership beyond the usual holding period, is also contributing to this trend.
"The supply/demand analysis of the market is favoring buyers," Harold Hope, Global Head of Secondaries at GSAM, said on Wednesday. "The opportunity set is driven by the growth in the private markets and factors like over-allocation that are driving a greater need for liquidity."
This development follows GSAM's previous secondaries fund, which closed at $10.3 billion in 2020.
In addition to Vintage IX, GSAM has separately accumulated around $1 billion for a new infrastructure secondaries fund named Vintage Infrastructure Partners. This move aligns with the current trend of investors diversifying their portfolios with assets such as toll roads and power networks. These investments are perceived to offer robust, steady returns and protection against inflation.
"The infrastructure secondary market is still developing but is growing quickly," Hope added. "Most investors are viewing it as a complement to traditional fund commitments and/or direct investments, and are funding it from their infrastructure allocations."
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