Goldman Sachs Secures $11.7 Billion for Private Equity Efforts

Goldman Sachs Group Inc. (NYSE:GS) has secured $11.7 billion for its private equity efforts, with most of this sum going into West Street Capital Partners IX. This is the ninth vintage of Goldman's flagship buyout strategy, while another $1.6 billion was raised for West Street Asia Equity Partners I and related co-investment vehicles brought in $500 million. The firm has been trying to build a larger asset-management business alongside its trading and investment-banking operations.

The latest fundraising gives this strategy more capital to work with, as Goldman Sachs aims to reach $750 billion in fee-paying alternative assets under supervision by the end of 2030. According to Michael Bruun, global co-head of private equity at Goldman Sachs Alternatives, more than one-third of West Street Capital Partners IX has already been invested.

The company expects to deploy this capital over roughly four to four-and-a-half years. Its investments so far include U.S. cybersecurity audit firm Schellman, European medical-device maker Numantec, and U.S. sports representation and marketing agency Excel Sports Management. The fundraising also fits into a much bigger expansion already underway.

Gross third-party alternatives fundraising across strategies reached a record $59 billion in fiscal Q2, with management and other fees from alternative investments reaching $725 million, up 22% from a year earlier. Goldman Sachs has set a longer-term goal of reaching $750 billion in fee-paying alternative assets under supervision by the end of 2030.