Goldman Sachs Alternatives Raises €1.35 Billion for West Street European Middle Market Credit Fund

NEW YORK, May 31st, 2024 – Goldman Sachs Alternatives (“Goldman Sachs”) closed West Street European Middle Market Credit Fund (“EMMC” or the “Fund”) on March 27th, 2024.

The total fund size stands at €1.35bn, inclusive of expected long-term asset financing. EMMC reflected commitments from a diverse group of limited partners including strategic and secondary investors as well as a meaningful commitment from Goldman Sachs employees.

The deal is comprised of a secondary purchase of a strip of investments held on Goldman Sachs' balance sheet, which forms a seed portfolio of high-quality, performing mid-market European loans, alongside a primary capital commitment. The transaction, which was co-led by Pantheon’s private credit secondaries business and Temasek, represents the first vintage of Goldman Sachs’ European Middle Market Credit Fund. Goldman Sachs will maintain significant alignment, retaining a material percentage of the assets being purchased by the fund. The fund will focus on direct origination of senior loan investments in high-quality, private equity-backed businesses in middle market companies in EMEA, leveraging the firm’s deep relationships with leading financial sponsors and entrepreneurs.

Goldman Sachs has invested as a principal on balance sheet in middle market private credit since 2004 and in Europe since 2013. The middle market business is an extension of the firm’s 28-year track record in direct lending, across both the junior and senior parts of the capital structure. The Fund targets investments in businesses with between €10m and €50m EBITDA. The Private Credit business at Goldman Sachs Alternatives is one of the largest investors of private credit globally with over $110bn AUM. The firm’s investment teams have navigated multiple market cycles, developing differentiated platform longevity and a strong track record.

James Reynolds, Global Head of Direct Lending within Goldman Sachs Alternatives said: “The EMMC fund is an attractive opportunity for our clients to be immediately invested in a portfolio of seasoned assets and continue to scale into future opportunities in European middle market credit.” 

Rakesh Jain, Global Head of Private Credit at Pantheon said: “We are excited to partner with Goldman Sachs and their team to deliver this highly bespoke and scaled credit secondary solution across a portfolio of attractive assets.

About Private Credit at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals.

Goldman Sachs has over $2.8 trillion in assets under supervision globally as of March 31, 2024. Established in 1996, Private Credit at Goldman Sachs Alternatives is one of the leading investors in private credit globally with over $185 billion of capital invested since 1996 across the spectrum of investment strategies ranging from senior direct lending, mezzanine, hybrid capital and asset finance. Follow us on LinkedIn.

 

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