New Goldman Secondary Fund Already Marked Down

Goldman Sachs today announced that it had raised $5.5 billion for its fifth secondaries fund, making it the largest such vehicle of all time. What Goldman didn't announce, however, was that it's already marked down the fund's portfolio by up to 12 percent. According to an investor letter obtained by peHUB, Goldman had called down 17% of the fund through the end of 2008 (although not all $5.5b was raised yet). This came via two calls: One last August and a slightly larger one last November. By December 31, however, Goldman was receiving guidance from GPs that the portfolio would be marked down between 5% and 9 percent. Once fees and expenses were factored in, the markdown deepened to between 7% and 12 percent.

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