Goldman closes real estate credit fund at $4.2bn

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Goldman Sachs, which shifted its real estate focus to lending from buying properties after the financial crisis, completed fundraising for its second real estate credit pool at $4.2bn.

Bloomberg News reports that the firm raised $1.8bn in equity pledges from institutions and wealthy individuals, supplemented by the same amount in borrowings and $600m of the firm’s own money, said Alan Kava, co-head of the real estate investing group in Goldman’s merchant banking division.

About 60% of the capital pledged came from U.S. investors and most of the rest was from Europe, with a small amount from Asian investors.

Goldman is competing with other private debt funds, mortgage-oriented real estate investment trusts and banks in offering ways to earn higher yields at a time of low interest rates. The new vehicle will invest in Europe and the U.S., expanding on Goldman’s first real estate credit fund, which made about $3.5bn of loans, according to a marketing document.

To access the complete Bloomberg article hit the link below:

Goldman Closes Real Estate Credit Fund at $4.2 Billion

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