Goldman Sachs’s asset-management arm is raising funds to buy stakes in private-equity firms as it looks to expand access to alternative strategies for wealthy clients, according to a person briefed on the strategy.
Bloomberg News reports that the bank plans to initially carry out the purchases with its Petershill II fund, which raised about $1.5bn and has mostly taken stakes in firms that manage hedge funds, said the person, asking not to be identified discussing fundraising or privately placed transactions. The bank will look for equity investments in both large- and medium-sized private-equity firms that employ a broad range of strategies across the globe, the person said. The bank will probably launch an additional fund later for similar investments.
Buying equity stakes in firms that run funds can tap relatively steady management fees. Fund managers sell because a big-name investor can help them lure institutional clients. The Wall Street Journal reported Goldman Sachs’s plan earlier Tuesday.
To access the complete Bloomberg News article hit the link below: