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Goldman Sachs raises $5.5bn for fifth secondaries fund

GS Vintage Fund V will focus on LP private equity interests and providing liquidity to LPs and GPs around the world, focusing on deals ranging in size from $1m to $1bn.

Goldman Sachs Asset Management has raised $5.5 billion for its fifth secondaries fund with returning and new limited partners from the Americas, Europe, Asia and Australia.

The fund, GS Vintage Fund V, will be used to acquire portfolios of private equity assets, including LP interests in private equity funds. The fund also will provide liquidity to LPs and GPs around the world.

Goldman announced the fund’s launch in May 2008 and said it would target between $3 billion and $5 billion, according to a private equity markets report from RR Donnelley. Goldman has made some small investments from the fund that have not been made public, a spokeswoman for the firm said.

The vintage funds look for opportunities ranging in size from $1 million to $1 billion, across all private equity platforms and geographies.

The fund was raised by the alternative investments and manager selection group of Goldman Sachs Asset Management. The AIMS group has more than $32 billion in capital commitments for funds of funds, secondaries and co-investments.

Goldman closed its fourth vintage fund on $3 billion in 2007. Investments from the fourth fund include the purchase of LP interests in 67 private equity funds and acquiring interests in 34 portfolio companies from Mellon Financial. The third vintage fund closed on $1.5 billion in 2004.

In 2003, Goldman bought the plastics and aluminium company Tredegar’s private equity partnership interests in a deal that also included W Capital Partners buying the company’s direct investment portfolio. The investment was made from the $1.15 billion second vintage fund.

Investors in Goldman’s past vintage funds include the West Yorkshire Pension fund, Australia-based AUSCOAL Super and AP Fonden 3, the third Swedish national pension fund.

Goldman’s fund closes at a time when volume on the secondaries market is high.