Goldman Sachs Alternatives Raises Over $7bn For Real Estate Credit Strategies

• Final close of West Street Real Estate Credit Partners IV and related vehicles builds on the firm’s decades-long history in real estate credit
• Fundraise closed above target with increased commitments from an expanded investor base

NEW YORK / LONDON, May 14th, 2024 – Goldman Sachs Alternatives today announced the final close of West Street Real Estate Credit Partners IV and related vehicles. The pool of capital represents over $7 billion of lending capacity including leverage. 

The fundraise was completed above target and is the largest to date in its series. The capital was raised from new investors, longstanding investors who increased allocations to the strategy, and significant investments from Goldman Sachs and its employees.

Institutional investors in the strategy include sovereign wealth funds, insurance companies, and U.S. and international pension plans. Investors from family offices, Goldman Sachs Private Wealth Management and third-party wealth channels also made significant commitments.  Real Estate Credit Partners IV will be the first fund in the series to make disclosures under Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR). 

The fundraise comes amid a significant opportunity set in real estate credit driven by major dislocations in real estate markets globally, creating attractive opportunities for alternative lending sources that can provide size and certainty of execution to borrowers. The Fund has already started investing into this environment, committing over $1.8 billion across eight investments globally to date. 

The successful fundraise reflects the team’s strong track-record lending to leading real estate investors and developers in different market environments, providing customized and flexible credit solutions to high quality projects and assets. Since 2008, Goldman Sachs has invested over $20 billion in high yield real estate credit globally. 

The real estate team consists of more than 250 professionals with offices in 19 cities and 11 countries. Real Estate at Goldman Sachs Alternatives leverages the broader resources of Goldman Sachs to source, evaluate and execute investments. 

Jim Garman, global head of Real Estate at Goldman Sachs Alternatives, said: “Consistent with our thirty-year history investing through multiple cycles, our real estate platform is designed to be dynamic in the face of changing conditions.  While our flagship equity strategies provide clients with access to differentiated opportunities across sectors and regions, with specific focus on assets benefitting from trends in technology, demographics and sustainability, credit has always been a critically important component of our product mix, particularly during periods of capital markets disruption.” 

Richard Spencer, chief investment officer for Real Estate Credit at Goldman Sachs Alternatives, said: “The market for real estate credit is characterized by a material and growing supply and demand imbalance. We believe this is creating attractive opportunities for alternative lending sources that can provide size and certainty of execution to borrowers.  With the close of one of the largest pools of capital dedicated to this opportunity, we are excited to continue the Real Estate Credit Partners program’s long history of providing tailored and creative financing solutions to the world’s leading developers and owners of high-quality real estate in the US, Europe and Australia.” 

Jeff Fine, global co-head of Alternatives Capital Formation at Goldman Sachs Alternatives, said: “As a solutions provider to the world’s most sophisticated investors, our real estate credit offering has become an increasingly important allocation for institutional and wealth clients alike, evidenced by the fund’s significantly expanded investor base and increased commitments from existing clients.  For investors seeking attractive risk-adjusted returns across cycles, real estate credit is an excellent diversifier to private credit and real assets exposures.  We are grateful for our clients’ partnership and trust in our differentiated approach.”

About Real Estate 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 1991, Real Estate at Goldman Sachs Alternatives is one of the leading investors in real estate with over $60 billion in capital invested since 2012 across the spectrum of investment strategies from core to opportunistic and credit. The global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity. Follow us on LinkedIn.

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