Goldman Sachs Asset Management closed the fourth vintage of its West Street infrastructure program at $4 billion.
West Street Infrastructure Partners IV (WSIP IV) has a global mandate to invest in value-add opportunities across energy transition, digital infrastructure, transportation and logistics, and social infrastructure. The fund close also included capital commitments from Goldman Sachs and its employees.
“The WSIP IV fundraise reflects the strength, track record and breadth of our global infrastructure platform,” said Philippe Camu, chairman of infrastructure at Goldman Sachs Asset Management. “We are grateful of the partnership from both our existing and new investors and look forward to what is ahead for our franchise. We are excited about the performance of our portfolio to date and remain committed to delivering consistent returns for our investors.”
Led by Camu, Scott Lebovitz and Tavis Cannell, the Infrastructure business at Goldman Sachs Asset Management has navigated multiple market cycles over 17 years.
“The infrastructure asset class is positioned to benefit from some of the most exciting secular tailwinds associated with decarbonization, digitization, de-globalization and demographics, each of which requires very significant mobilization of private capital,” Lebovitz added. “In the current economic environment, a disciplined focus on risk, and managers’ value creation capabilities will act as key performance differentiators, where our platform is very well positioned.”
In his view, many investors remain under-allocated to infrastructure, which has attracted new clients for the firm. Goldman has also seen interest in infrastructure secondaries with the close of its inaugural Vintage Infrastructure Partners fund in September.
WSIP IV has already committed $2.3 billion to eight companies, diversified by geography and sectors, including: Synthica, a U.S. developer and operator of organic renewable gas plants; Frøy ASA, a provider of transportation and support infrastructure to the Norwegian aquaculture sector; Verdalia, a developer and operator of European biomethane plants; GridStor, a developer and operator of utility-grade battery storage projects in the U.S.; ImOn Communications, a fiber to the home broadband provider based in Iowa; and Adapteo, a provider of reusable modular space rental solutions in Northern Europe.
The middle-market infrastructure fund seeks to invest primarily in operating businesses with defensive, long-term cash flows, strong market positions, and in assets and services that are critical to society. Across the portfolio, the team also leverages operating advisors and experts in the Goldman Sachs Value Accelerator who support investment companies in scaling revenue, operational excellence, digital transformation, talent strategy, and ESG.