Goldman Sachs poised to raise new $10bn fund

Goldman Sachs is reportedly back to raise $10 billion for a new private equity fund after closing GS Capital Partners V last year on $8.5 billion.

The Goldman Sachs Group is poised to raise a new global private equity fund GS Capital Partners VI which has a $10 billion target, according to media reports.
A Goldman Sachs spokesman declined to comment on the report.

The new fundraising comes after Goldman Sach’s fifth global private equity fund GS Capital Partners V closed on $8.5 billion last year.

“The pace of investments in private equity has been pretty brisk in the past year or two, and there have been some Asia-focused funds that fully-invested in two years” an active investor in private equity said of the short gap between the two multi-billion dollar funds. 

The New York-headquartered investment bank is seeking to raise 10 percent of the $10 billion target from its employees, and expects to complete fundraising at the beginning of 2007, according to The Times, a UK daily.

Goldman Sachs itself committed in excess of $2.5 billion, or 30 percent of GS Capital Partners V’s total capital, according to the company. Other investors in GS Capital Partners V are part of the firm’s network of qualified institutional and high net worth clients.

“They are capable of fundraising in no time at all. It is a matter of ringing up their clients to ask: ‘Are you in or out?’” said a source familiar with the firm.

Goldman Sachs’ global private equity activity has become increasingly significant. At present, Goldman Sachs Capital Partners is involved in the $22 billion public-to-private transaction of Kinder Morgan, an energy logistics company listed in New York.