Goldman Sachs Asset Management held the final closes of its private market secondaries funds with over $15 billion in investor capital, officials at the $2.7 trillion firm announced.
Vintage IX and Vintage Infrastructure Partners were set up to provide liquidity solutions to private market limited partner investors and general partner managers. While the LP interest in secondaries has begun to soar this year, the Goldman Sachs’ alternatives franchise has been active in secondaries for 25 years and has more than $45 billion in assets under management.
Vintage IX is the largest offering among the Vintage Funds, closing above its fundraising target with $14.2 billion in equity commitments from global allocators alongside a meaningful commitment from Goldman Sachs employees. The preceding fund closed with $10.3 billion in 2020.
Harold Hope, global head of secondaries at Goldman Sachs Asset Management, said: “We are deeply appreciative of the support from both existing and new investors. In addition to this capital, we also raised committed co-investment capital which gives us additional flexibility to pursue a diverse opportunity set. With this capital we are committed to delivering on consistent and differentiated private equity returns for our investors.”
According to Goldman Sachs, demand for liquidity is high with many global institutions being over-allocated to private markets and in search of ways to generate liquidity within their portfolios.
Hope views the secondaries market being at an “inflection point.” He said the long-term winners in this market will be buyers that can navigate it as a whole and weigh relative value across transaction types and structures.
The secondaries team that Hope leads executes both traditional LP secondary transactions and non-traditional secondaries such as continuation vehicles and preferred equity. They are able to leverage the broader resources of the firm to source, evaluate and execute on these investments.
Vintage Infrastructure Partners close totaled $1 billion and builds on the firm’s 15-year track record in the space. Interestingly, the team’s sourcing of infrastructure secondaries grew by over 40% between 2021 and 2022. Another record level of transactions were completed in the first half of 2023, according to officials.
“Vintage Infrastructure Partners is a natural extension of our platform, and we are encouraged by the tailwinds that continue to drive growth and opportunity in that part of the market,” Hope added. “With dedicated infrastructure secondary capital, we hope to be a more complete solutions provider to investors and managers looking for liquidity options across the entire range of their private market investments.”