Goldman makes headway with Vintage VIII fundraise – exclusive

The investment bank's secondaries unit is eyeing a final close on the vehicle in the first quarter of next year.

Goldman Sachs Asset Management is more than 75 percent towards the target of its latest flagship private equity secondaries fund, Secondaries Investor has learned.

The New York-headquartered investment bank’s Vintage unit had raised at least $5.4 billion for Vintage VIII as of August, according to a source familiar with the matter.

The firm expects to hold the final close on the vehicle in the first quarter of next year, it is understood.

Vintage VIII has two sleeves for investors: one which uses acquisition financing at typical market levels and another which uses a lower level of leverage of between 5-10 percent, the source noted.

The fund, which launched in the last 12 months seeking $7 billion, has a higher carried interest than its 2016-vintage predecessor, Secondaries Investor reported in February. Vintage VIII charges 12.5 percent carry, compared with the 10 percent charged on its $7.2 billion Vintage VII, according to private placement memorandums for the vehicles seen by Secondaries Investor.

Goldman ranked fifth in Secondaries Investor‘s latest SI 30 ranking of the biggest fundraisers, having amassed just over $17 billion between January 2014 and June 2019.

A spokesman for Goldman did not return requests for comment by press time.