Goldman Sachs holds $1bn first close on latest senior debt vehicle

The firm has also held large closes on junior debt and real estate debt funds, leading it to finish at the top of our annual fundraising ranking for the first time.

Goldman Sachs Merchant Banking Division has held a first close on its second senior debt fund, following a final close on a massive $9.9 billion mezzanine fund.

The New York-based investment bank has raised $1.07 billion for its Broad Street Senior Credit Partners II, according to regulatory filings with the Securities and Exchange Commission.

The fund invests in the Americas and Europe, targeting investment sizes of $250 million to in excess of $600 million, according the firm’s website. It targets companies with between $300 million and more than $5 billion of enterprise value.

It will back leveraged buyout and management buyout transactions, as well as recapitalisations, refinancings, acquisition financings and restructurings for both private equity-backed and non-private equity-backed companies.

A Goldman Sachs spokeswoman declined to comment on the fund.

The firm collected $1.91 billion for its 2015-vintage Fund I, PDI data show. It has posted a 9.23 percent net internal rate of return and a total-value-paid-in multiple of 1.09x, according to return data from the state of Hawaii’s Office of Hawaiian Affairs.

Goldman Sachs has had a robust fundraising year for credit. It wrapped up a $9.9 billion junior debt fund, GS Mezzanine Partners VII – the largest single credit fundraise ever – and closed on $4.2 billion for Broad Street Real Estate Credit Partners III. Those large figures lifted the firm from ninth to first in our annual PDI 50, a fundraising ranking.

Fundraising for private debt through the first three quarters of the year has totalled $88.57 billion, according to PDI data. This has been in line – if a little on the low side – with historical standards, but sharply down from the $200 billion-plus total from 2017. Of the aggregate amount locked down this year, some $34.83 billion (or 39.32 percent) has been raised for senior debt.