Goldman Sachs to raise energy debt fund

 The asset management business of the New York bank is the latest to market a fund focused on stressed energy companies.  

Goldman Sachs Asset Management (GSAM), is raising money for a fund to invest in distressed companies in the energy sector, according to DealBook. The firm is reportedly seeking capital from wealthy individuals and institutions for this fund, according to marketing materials obtained by DealBook. Andrew Williams, a spokesman for Goldman Sachs, declined to comment in an e-mail to PDI.

The fund, which is called the Energy Investment Opportunities Fund, will invest mostly in high-yield corporate credit. To a lesser extent, it will also buy investment-grade credit and secured bank loans. Goldman Sachs hasn’t set a target for the fund yet, but plans to hold a first close by the end of this quarter, the DealBook article said.

Many prominent private equity and debt firms have recently announced plans to launch energy debt funds to capitalize on falling oil prices. These include Avenue Capital Group, Apollo Global Management, GSO Capital Partners, KKR, Oaktree Capital Management, among others.

PDI’s sister publication Infrastructure Investor also reported earlier this week that private equity firm EIG Global Energy Partners and wealth management firm Triloma Financial Group are joining forces to launch the Triloma EIG Global Energy Fund.