Goldman Sachs (GS-NYSE) has raised its ‘first’ GS Infrastructure Partners fund with more than $6.5 billion in committed capital. This is Goldman Sachs’ first fund dedicated to making infrastructure investments and will make such investments globally. The fund will seek investments in infrastructure sectors including transport infrastructure, such as toll roads, airports and ports as well as regulated gas, water and electrical utilities.
The press release keeps saying this is the first of its kind. Are there going to be more? They have already been involved in recent financings, so this isn’t exactly virgin territory. It already has commitments to Associated British Ports and Kinder Morgan and the fund will be managed in New York and London.
The co-heads of the group noted in the press release: Steven Feldman and William Young said "With the success of this fundraising, we have the capital to create and pursue large-scale investment opportunities while achieving portfolio diversification." This is utilizing the firm’s expertise in Private Equity and in Real Estate Investing to the n-th degree.
While the Fund is global, the focus will be on larger investment opportunities in developed markets without political barriers and unknowns mostly in the EU and North America. Goldman Sachs has committed approximately $750 million on its own and the balance will be from pension funds, insurance companies and banks.
Goldman Sachs has a current market cap of almost $91 Billion and controls more global assets and trading volume than many developing nations in the world.
Jon C. Ogg
December 28, 2006
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