Goldman Sachs has closed its $5.25 billion private equity fund, GS Capital Partners 2000, which is its largest fund to date almost twice the size of the $2.8 billion pool of capital it raised two years ago. Goldman executives will manage the fund, and it is thought that a significant share of the capital will be invested in Europe and Asia, depending on investment opportunities in the regions.
An interesting feature of the fund is the percentage of money that was committed by Goldman employees and by the bank itself at $1.5 billion, just under 30 per cent of the total raised. Investment opportunities were open to any employee meeting SEC requirements. Goldman hopes this will bring people together within the company, building a team spirit.
External investors, including traditional private equity investors, private clients and institutions, subscribed the balance.
Goldman Sachs, which is interested in tapping into new high-tech opportunities, anticipates that it will take three to five years to invest the money. The fund will focus on traditional leveraged buyout deals as well as early-stage investments, concentrating on emerging telecoms and technology deals. Deals will include traditional merchant bank investments, buyouts, emerging telecom and high-tech businesses.