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Goldman raises $6.5bn for infrastructure

The real estate and private equity teams within Goldman Sachs’ merchant banking division will help manage the giant new infrastructure fund.

Goldman Sachs has announced a new infrastructure fund that establishes the firm as a dominant presence within the global infrastructure investment market.

The firm has raised more than $6.5 billion (€4.9 billion) for GS Infrastructure Partners, the firm’s first fund dedicated to making infrastructure investments in areas such as toll roads, airports, ports, gas water and electrical utilities.

The news comes as several other groups are initiating or bolstering infrastructure investment programmes, such as The Carlyle Group and JP Morgan. Australia’s Macquarie already has a major, global infrastructure investment programme.

Goldman’s infrastructure group is led by Steven Feldman and William Young. The new fund will focus “on larger investment opportunities in developed markets with established legal, political and regulatory frameworks”, according to a statement.

Already the fund has contributed roughly $750 million toward two deals – Associated British Ports and the buyout of Kinder Morgan, an energy infrastructure provider.

The fund will be managed out of New York and London, with professionals from Goldman’s real estate and private equity teams contributing to the effort, according to the statement.