Goldman $10 billion fund to invest in LBO loans


Goldman Sachs has raised $10 billion to create a fund that will invest in loans used to back leveraged buyouts and take advantage of a gap in the markets caused by the credit crisis, according to a Financial Times report on Wednesday.

Goldman will use the fund to buy senior loans, or those that are paid off before other debts. The investment bank already has a $20 billion fund that invests in mezzanine debts, paid after the senior debt, the newspaper reported.

The Financial Times wrote that by using the two funds, Goldman can commit to financing large deals on its own without having to recruit outside investors for the debt. The paper said the Goldman funds were much larger that those of other equity firms and investment banks.

Goldman's new fund will operate under Goldman's private equity arm, with money from the firm's clients, bank and partners, according to the newspaper.

While the fund-raising is not yet officially complete, its head, Tom Connolly is already looking at deals, the Financial Times reported. Citing people familiar with the transaction, the FT said one such deal would provide the senior debt for the sale of a $2 billion manufacturing company.

A representative from Goldman Sachs was not immediately available for comment. (Reuters)


MKB Q1-Q3 Earnings Climb 16% Banking

MKB Q1-Q3 Earnings Climb 16%

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

European Shoppers Reveal Holiday Habits  Retail

European Shoppers Reveal Holiday Habits 

Hard Rock Hotel Opens 'Star Chalet' for Winter Season Hotels

Hard Rock Hotel Opens 'Star Chalet' for Winter Season


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.