When Goldman Sachs raised $8.5 billion for its fifth fund early last year, the firm—for a very short stretch—controlled what was then the largest private equity fund in the industry. In the days following the close, Managing Director Richard Friedman insisted that Goldman “didn’t want to raise more than [it] can invest.”
According to press reports in recent weeks, Goldman Sachs is already in the market for a new vehicle, seeking $10 billion for GS Capital Partners VI. The firm is reportedly looking to raise $1 billion from its employees and expects to finish raising money from outside investors by the beginning of next year. Goldman Sachs and its employees expect to contribute about one-third of the new fund. The firm declined comment for this story.It’s not surprising the firm would seek a larger pool of capital. The average investment size for the firm is $175 million, which is roughly twice the size of deals in 2000. Since 1986, Goldman Sachs has invested more than $17 billion of equity in more than 500 companies. In addition to buyouts, the firm has secondary, funds-of-funds, mezzanine and other private equity units. The firm also allows for venture investments. It pursues deals in the United States, Europe and Asia and targets equity investments ranging in size from $100 million to $300 million.Goldman Sachs is one of the sponsors involved in the $22 billion buyout of energy and petroleum transportation company Kinder Morgan (NYSE: KMI), which currently stands as the second largest buyout deal ever. Goldman Sachs, American International Group, The Carlyle Group and Riverstone Holdings agreed to buy Kinder Morgan for $15 billion in cash and about $7 billion in debt.