Goldman Can't Vote On Its Own Strategy Shift
GS Capital Partners is making a plea to its LPs, and it doesn’t have the support of the largest one—itself. GSCP, a private equity arm of Goldman Sachs, is seeking approval from 50% of its investors to use money from its buyout fund to purchase distressed debt. But a whopping $9 billion of the firm’s $20 billion sixth fund came from Goldman Sachs itself -- including contributions from employees -- and those stakeholders do not get to vote on matters such as strategy change, according to the LP agreement.
17 March 2009•1 min read
