Goldman Sachs has raised $5.5bn for a fund to buy discounted private equity holdings – the largest amount ever raised for a fund of this type – as investors anticipate a flood of forced sellers trying to offload private-equity stakes.
Goldman's Vintage V fund last week closed to new investors after 10 months of fundraising, having surpassed its goal of $5bn. The fund is a so-called secondary fund, which buys investors' holdings in private equity and buy-out funds.
The successful fundraising reinforces the view that the private equity secondary market is where most deals are expected to happen in the next year, as investors try to raise cash. JPMorgan Chase is also raising a secondary fund and is believed to have attracted $500m over the past few months.