News & Analysis

Goldman holds close on infra secondaries fund

Goldman Sachs Asset Management currently invests in private equity and real estate secondaries through its Vintage family of funds.

-

Goldman Sachs Asset Management has become the latest big name to raise an infrastructure secondaries fund.

The New York-headquartered alternatives manager has raised at least $125.6 million for Vintage Infrastructure Partners from 115 investors, according to two filings with the Securities and Exchange Commission. The fund made a first sale on 28 February.

The target of the vehicle is undisclosed.

The new fund complements Goldman Sachs’ private equity and real estate secondaries offerings. Its most recent PE secondaries fund Vintage VIII closed on $10.3 billion in November 2020, outstripping its target of $7 billion, Secondaries Investor reported.

The 2019-vintage Vintage Real Estate Partners II raised $2.75 billion against a target of $1.25 billion, according to Secondaries Investor.

Goldman invests in infrastructure on a primary basis through its West Street Infrastructure funds. It is in market with West Street Infrastructure Partners IV targeting $4 billion, according to source with knowledge of the matter. Thus far the fund has collected $1.9 billion, according to Infrastructure Investor data.

The infrastructure secondaries space has developed rapidly in the past 18 months. In April, Macquarie Infrastructure and Real Assets hired former Strategic Partners executive Wandy Hoh to lead the build-out of an infrastructure secondaries team.

In May, Secondaries Investor reported that Brookfield Asset Management planned to start accepting outside capital for its new infrastructure secondaries strategy in late 2021.

The largest pool of capital yet raised for the strategy is Strategic Partners’ third infrastructure fund, which raised $3.75 billion by final close in July 2020.

Real estate and infra/real asset secondaries accounted for a combined 11 percent of secondaries transaction volumes in 2021, equivalent to $14.75 billion, according to Greenhill’s year-end survey.

Goldman did not wish to comment.

This article was reflected to update the target for West Street Infrastructure Partners IV.