Goldman Sachs Alternatives Launches Climate Credit Strategy with $1bn in Initial Commitments
NEW YORK, March 12th, 2025 - Goldman Sachs Alternatives today announced the launch of a new dedicated private credit strategy focused on providing tailored financing solutions to climate and environment related businesses. The strategy has already attracted $1 billion of institutional equity.
The Climate Credit strategy is senior-focused and has the ability to invest across the capital structure in a sector that has a growing need for capital, driven by macro tailwinds. Sustainable solutions have emerged as a key thematic for many corporations, while innovation and scale are increasing the cost-effectiveness of many climate solutions, and policy considerations are creating unique market opportunities.
Private debt capital raised for sustainable-focused investments has been sparse compared to the amount of private equity capital raised. Scarcity of private debt capital coupled with increasing demand have created a notable supply-demand imbalance, leading to significant opportunities for lenders. Given regulatory changes, tax incentives, and the maturation of climate transition industries, companies are increasingly seeking flexible debt capital to meet their financing needs.
This new strategy is managed by the Private Credit business at Goldman Sachs Alternatives, with a global team that has almost 30 years of investing experience in Private Credit as well as almost 20 years investing in environment and climate solutions. The business has invested over $190 billion since 1996.
Today, the firm’s global presence, experience in navigating a complex market environments, and ability to execute at scale often make it a first-choice partner for companies and financial sponsors seeking these financing solutions. With robust origination channels and access to the broader GS platform, the firm seeks to source proprietary investments and deliver differentiated performance for clients.
James Reynolds, Global Co-Head of Private Credit at Goldman Sachs Alternatives, said: “We see significant opportunities to address the supply-demand imbalance in private credit solutions related to climate transition. Substantial capital has been raised for private equity investment in the space and debt solutions are needed to provide further scale. We look forward to partnering with leading companies and financial sponsors to deliver performance for our clients and are deeply appreciative of the support we have received so far from investors in this new strategy.”
About Goldman Sachs Asset Management Private Credit
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1996, the Private Credit business within Goldman Sachs Asset Management is one of the world’s largest private credit investors with over $125 billion in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies. Our deep industry and product knowledge, extensive relationships and global footprint position us to deliver scaled outcomes with speed and certainty. Follow us on LinkedIn.
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