Bloomberg News reports that the fund won’t be as large as some of the investment bank’s earlier vehicles, and the firm will contribute a relatively small amount of the capital because of post-crisis restrictions on risk-taking by banks, the person said, asking not to be identified because the plans are confidential.
Also in contrast to earlier funds, it won’t carry Goldman Sachs’s name, instead going by West Street Capital Partners, in reference to the firm’s address in lower Manhattan, the person said. Executives expect to close initial fundraising by the end of this year. The Wall Street Journal reported the plan earlier Thursday.
The new fund shows how Goldman Sachs is adjusting to post-crisis regulations including the Volcker Rule. Prior to the 2008 crisis, Goldman traditionally took significant stakes, helping to align its interests with clients. In 2007, Goldman Sachs Capital Partners VI raised about $20bn, with $9bn coming from the firm and employees, according to a statement at the time.
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