Goldman Sachs Closes $9.6B Buyout Fund with Eye on Strategic Buyers

Goldman Sachs Asset Management has closed its latest flagship buyout fund, West Street Capital Partners IX, which raised $9.6 billion in commitments. The firm's global co-head of private equity, Michael Bruun, said that targeting companies with enterprise values of $500 million to $3 billion allows strategic buyers to remain within reach even if the businesses double or triple in size.

The fund will invest across services, technology, healthcare, and financial services in North America and Europe. Over a third of the fund has already been deployed, with early deals including majority stakes in Schellman & Company, Excel Sports Management, and Numantec. Goldman expects to deploy almost all of the fund between 2025 and 2028.

Bruun noted that valuation multiples have been relatively flat and 'seem to be converging' across sectors, meaning sponsors must grow the earnings of their portfolio companies to generate a meaningful return on exit. The firm's in-house operating platform, the Value Accelerator, now has 120 operating partners working to do this.