Report: Goldman increases fund target to $19 billion(2)

Goldman Sachs’ private equity arm has reportedly almost doubled the target for its latest fund to $19 billion, which would make it one of the world’s biggest buyout funds.

Goldman Sachs has reportedly raised the target size of its latest private equity fund to a massive $19 billion (€14.6 billion), according to the Wall Street Journal.

The target figure is almost twice as much as its initial target of $10 billion, and would bring it in line with the world’s biggest private equity groups.

It has already raised $12 billion for Goldman Sachs Capital Partners VI, but could look to take advantage of huge demand to increase this figure substantially.

A fund of this size would propel Goldman ahead of rival buyout firms like Texas Pacific Group, Bain Capital and The Carlyle Group. Only the Blackstone Group and Kohlberg Kravis Roberts, who are both set to close record-sized funds of about $20 billion, are likely to have access to a bigger pool of capital.

It is also likely to re-ignite the frequent debate about how Goldman manages potential conflicts of interest as it looks to achieve the so-called “triple play” of advising and lending to private equity firms, while competing against them as a principal investor.

Either way the fund will be a record for Goldman, which is currently investing an $8.5 billion fund.

The bank declined to comment.