Goldman Sachs Asset Management has announced the closing of $5.2bn growth equity investment fund, dubbed West Street Global Growth Partners I.
West Street marks the investment bank’s first direct private markets fund, and will invest in high-growth businesses with strong market positioning and business models.
The fund attracted $3.7bn from different global institutional and high net worth investors, along with significant commitments from Goldman Sachs and its employees.
It will be managed by the growth equity business within Goldman Sachs Asset Management, based in New York, London, and Hong Kong.
Goldman Sachs asset and wealth management chief investment officer Julian Salisbury said: “We believe the pace of innovation across enterprise technology, financial technology, healthcare, and consumer businesses shows no sign of abating, and we are excited to work closely with portfolio companies to navigate volatility and reach the next stages of growth.
“Our global team, drawing on the firm’s extensive networks and deep relationships, is well-positioned to identify unique opportunities and create value for investors. We are grateful for the support of our LPs in partnering with us on this inaugural fund.”
The West Street Global Growth Partners fund seeks to buy minority stakes in businesses with an average investment size of about $50m, across the growth equity market.
Based on the deep domain expertise, unique competitive position, and extensive investment experience of the team, the fund targets enterprise technology, financial technology, healthcare, and consumer sectors.
The fund uses Goldman Sachs’ unique operating platform, the GS Value Accelerator, which includes a global network of operating advisors and sector experts.
West Street Global Growth Partners fund has already invested in various companies, diverse industries, including 4G Clinical, AlphaSense, Exotec, Fortanix, Locus Robotics, MegaRobo, Starling Bank and Xempus.
According to Reuters’ report, Goldman Sachs Asset Management manages more than $2tr in assets, and has closed a $9.7bn private-equity fund last year.
