Goldman Sachs has raised a $10 billion (€6.4 billion) senior debt fund to complement the firm’s $20 billion mezzanine fund, according to the Financial Times.
The fund will fill the gap left by banks now resistant to lending capital for private equity deals in the wake of the credit crisis and allow Goldman to finance large buyouts without the need for outside investors.
Tom Connolly is heading the leveraged loan fund for Goldman after leaving his post as head of the investment bank’s US leveraged finance unit, as reported by PEO last month.
Although the fund has not officially completed fundraising, Connolly is already looking at deals including providing the debt for the sale of a manufacturing company with an enterprise value of $2 billion, according to the Financial Times report.
Other buyout firms, such as Kohlberg Kravis Roberts and TPG, are developing similar capabilities as well, according to the report. Blackstone last year purchased GSO Capital Partners for $930 million to expand its credit capabilities.