Direct Private Investing

Direct Private Investing is offered through the Goldman Sachs Merchant Banking Division (MBD).

 

MBD is the primary center for Goldman Sachs’ long term principal investing activity, and Goldman Sachs has operated this business as an integral part of the firm for 30 years. The group invests in equity and credit across corporate, real estate and infrastructure strategies.

Since 1986, the group has invested approximately $155 billion of levered capital to invest across a number of geographies, industries and transaction types. With nine offices in seven countries around the world, MBD is one of the largest managers of private capital globally, offering deep expertise and long-standing relationships with companies, investors, entrepreneurs and financial intermediaries around the globe.

Our investing strategies are broken into two categories - Equity and Credit.

 

Equity

Since inception, we have invested approximately $100 billion of capital through investment funds focused on private equity, growth capital, infrastructure and real estate.

Corporate Private Equity

A global leader in private corporate equity.

The group:

  • Invests across a broad range of industries in the Americas, Europe and Asia (including India),

  • Targets investments ranging in size from $50 million to more than $800 million, and

  • Seeks to maximize investment value through financial and operational value creation.

Approach

MBD seeks long-term capital appreciation by committing equity to high quality companies with strong management. We seek to generate superior returns in a variety of situations, including leveraged buy-outs, recapitalizations, growth investments and stressed/distressed investments across a range of industries and geographies.

Advantages

We offer unique benefits to our clients, beginning with our 30 years of private corporate equity investing experience. Our global network provides access to well-regarded management teams, sponsors and leading corporations. Other advantages include:

  • Access to sophisticated financial advice in public and private market financing, mergers, acquisitions, trading, foreign exchange, commodities and investment and economic research.

  • Relationships with numerous companies, individuals and governments worldwide in sourcing, structuring and operating successful business ventures.

  • A creative approach to identifying attractive investments by leveraging the scale of our committed capital, sponsorship and experience.

  • Successful execution, even in difficult market environments, due to our established relationships and broad access to financing and capital markets.

  • Active support for our portfolio companies’ long-term goals, management teams and efforts to build value.

 

Infrastructure

Goldman Sachs is one of the largest infrastructure fund managers globally, having raised more than $10 billion of capital since the inception of the business in 2006.

The primary focus for GS Infrastructure Partners (GSIP) is on investment opportunities with the following parameters:

  • Sectors including transportation infrastructure (such as airports, ports, railways and roads), utilities infrastructure (such as electricity, gas and water networks) and energy (such as pipelines, terminals and power generation),

  • Global mandate across OECD countries, and

  • Target investment sizes ranging from $100 million to $500 million of GSIP capital per investment, with the ability to do larger transactions with additional partners. 

Approach

We pursue a long-term investment strategy focusing on core infrastructure assets and partnering with best in class operators/management teams. Our infrastructure investments typically have the following characteristics:

  • Fixed assets that provide essential services to communities.

  • Strong competitive positions and high barriers to entry.

  • Revenues that are contracted and/or linked to underlying economic growth/inflation.

  • Existing assets with performance history and select development-stage opportunities.

Advantages

We offer a unique combination of advantages to our investors and operating partners, including:

  • A dedicated infrastructure investing team with deep sector experience.

  • Access to a broad network of longstanding relationships with companies, infrastructure investors, governments, municipalities, financing providers and advisors throughout the world.

  • Access to Goldman Sachs’ substantial global resources, which are available to assist the investment team throughout the investment lifecycle including with developing differentiated strategies, sourcing opportunities, executing investments and ongoing management of our portfolio businesses.

  • Experience as owners across sectors and economic cycles and active involvement in supporting our management teams in strategic, operational and financial decisions.

  • Access to substantial, long-term capital resources through our funds and relationships with other infrastructure investors.

  • Strong commitment to both our investors and operating partners/management teams.

 

Real Estate Equity

Goldman Sachs is one of the largest real estate equity investors globally with approximately $35 billion of capital invested since inception in 1991. This group invests globally across a broad range of markets, acquiring real estate companies, real estate projects, loan portfolios, debt recapitalizations and direct property.  

The group:

  • Invests globally across multiple product types, including hospitality, retail, office, golf and multifamily,

  • Targets equity investments ranging in size from $50 million+, and

  • Manages a series of regional, niche and core/core-plus funds with targeted investment objectives.

Approach

MBD Real Estate’s investing program seeks to pursue acquisitions in markets where we have both extensive real estate experience and existing platforms, with a focus in the United States and Europe.

Advantages

Our real estate equity funds have invested through a global network of relationships. We source opportunities through our broad network of relationships with companies, real estate private equity firms, private family investors, entrepreneurs, and financial intermediaries. Other advantages include:

  • Access to strong in-house experience with major product types and niche businesses, and to our relationships with industry experts.

  • Capital markets expertise across Goldman Sachs.

  • Global asset management through the Realty Management Division (RMD). RMD provides global underwriting and asset management as well as a fully integrated real estate services platform including construction, risk management, loan servicing and reporting expertise. RMD has employees in the Americas, Europe and Asia.

 

Growth Strategy

Helping entrepreneurs scale businesses through strategic capital and worldwide network.

GS Growth focuses exclusively on investments in growth stage and technology-driven companies. A part of Goldman Sachs' Merchant Banking Division, we have invested more than $5 billion in strategic capital for entrepreneurs and management to execute long-term growth plans since 1994.  

Approach

We believe by partnering with strong management teams and leveraging the resources of the firm, we can help companies grow into market leaders and create long-term value for their customers, partners, and shareholders. The team targets investments ranging in size of $20-250+ million in companies with the following characteristics:

  • Proven management team
  • Strong financial track record and 15%+ annual revenue growth
  • Large market opportunity
  • Innovative technology or proprietary processes that create a sustainable competitive advantage
  • Flexibility to do minority and majority transactions

Advantages

Aside from our 25+ years of corporate investing experience, our portfolio companies have access to the broad range of resources offered by Goldman Sachs, including:

  • Global network of client relationships that can be important in structuring and operating successful business ventures, and recruiting senior executives and board directors
  • Access to market insights and sophisticated financial advice
  • Availability of additional resources and capital to enable continued organic growth, acquisitions, or geographic expansion

To discuss ways in which we can partner with you to achieve your financing objectives, please contact us at goldmansachsgrowthequity@gs.com 

 

Our Portfolio 

 

Credit

Since inception, we have invested approximately $55 billion of leveraged capital through investment funds focused on mezzanine financing, senior secured lending, distressed debt and real estate credit.

Mezzanine Debt

GS Mezzanine Partners ("GSMP") is the largest mezzanine fund family in the world, with more than $30 billion of leveraged capital invested since 1996.

The group:

  • Invests across a broad range of industries, primarily in the Americas and Europe, and

  • Targets investments ranging in size from $100 million to more than $500 million

Approach

GS Mezzanine Partners seeks to provide private high yield capital for mid- to large-sized leveraged and management buyout transactions, recapitalizations, financings, refinancings, acquisitions and restructurings for clients such as private equity firms, private family companies and corporate issuers.

We target high-quality companies with $500 million to more than $5 billion of enterprise value with leading market positions in industries with high barriers to entry. We look for well-regarded management teams and stable, cash generative businesses.

Advantages

With 20 years of experience in the mezzanine market, our group has strong relationships with leading private equity sponsors and corporations across the globe. These relationships, together with our ability to access the Goldman Sachs network, generate opportunities for GS Mezzanine Partners to extend credit. Other advantages include:

  • Ability to develop customized solutions tailored to each investment situation.

  • Ability to extend credit in size with certainty to companies in need.

  • Access to the full resources and expertise of Goldman Sachs, including sophisticated financial advice in leveraged finance, mergers and acquisitions, research, trading, foreign exchange and commodities.

 

Senior Loans

This is one of the largest fund families dedicated to the senior secured loan asset class, with over $16 billion of leveraged capital invested since 2008.

The group:

  • Invests across a broad range of industries in the Americas and Europe,

  • Targets investments ranging in size from $250 million to more than $600 million, and

  • Seeks to extend credit to finance companies in need of capital.

Approach

Loan Partners and Senior Credit Partners seek to invest primarily in high quality senior secured loans. Our focus is on originating loans for mid- to large-sized leveraged and management buyout transactions, recapitalizations, refinancings, financings, acquisitions and restructurings for organizations such as private equity firms, private family companies and corporate issuers. We may also make opportunistic purchases of senior secured loans in the secondary market.

We target companies with $300 million to more than $5 billion of enterprise value with leading market positions in industries that have high barriers to entry. We look for well-regarded management teams and stable, cash generative businesses.

Advantages

Loan Partners and Senior Credit Partners benefit from strong relationships forged for 30 years with leading private equity sponsors and management teams across the globe. These, along with the ability to leverage the rest of the Goldman Sachs franchise, help us generate opportunities to finance companies in need of capital. Other advantages include:

  • Ability to develop customized solutions tailored to each investment situation.

  • Ability to extend credit in size with certainty to companies in need. 

  • Access to the full resources and expertise of Goldman Sachs, including sophisticated financial advice in leveraged finance, mergers and acquisitions, research, trading, foreign exchange and commodities.

 

Real Estate Credit

MBD has invested over $5 billion in high-quality real estate loans since 2008. 

The group:

  • Invests in North America and Europe in senior and mezzanine loans collateralized by high quality real estate,

  • Targets investments ranging in size from $50 million to $150 million, and

  • Seeks to extend credit to finance real estate developers, owners and operators in need of capital.

Approach

Real Estate Credit Partners seeks to generate attractive risk-adjusted returns through the creation of a diversified pool of investments in both senior and mezzanine loans collateralized by high quality real estate assets. The primary focus is to create strong current yield for its investors through the origination of loans to facilitate real estate acquisitions, refinancings and recapitalizations throughout the United States and Europe. As one of the largest global investors in private real estate credit, the team’s dedicated platform, strong sponsor relationships and access to the entire Goldman Sachs network ensures comprehensive coverage of the market and allows for the creation of unique lending opportunities. 

Advantages

Real Estate Credit Partners leverages our firm’s extensive network of real estate and structured finance professionals across multiple departments to source and execute transactions. Other advantages include:

  • Access to our firm’s relationships with lenders, real estate investors, broker/dealers and other parties to source unique real estate mezzanine and corporate-style debt investment opportunities.

  • Ability to leverage investment expertise across our firm, including through the Realty Management Division (RMD). RMD provides global underwriting and asset management as well as a fully integrated real estate services platform including construction, risk management, loan servicing and reporting expertise. RMD has employees in the Americas, Europe and Asia.

 

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