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Goldman raises $5.5 bln for equity investments

  US banking giant Goldman Sachs said Monday it had raised $5.5 billion from investors, including from Asia and Europe, for a fund to acquire private-equity assets.

GS Vintage Fund V is the latest fund raised by the Alternative Investments & Manager Selection Group of Goldman Sachs Asset Management, the asset management arm of the bank. Goldman said it had raised “approximately $5.5 billion in capital commitments” for its fifth dedicated private-equity secondaries fund.

“Limited partners in GS Vintage Fund V include existing and new institutional and private investors throughout the Americas, Europe, Asia and Australia,” it said in a statement.

The fund will focus primarily on acquiring portfolios of private-equity assets and providing "unique liquidity and capital solutions” around the world, it said. Goldman Sachs Asset Management managed $779 billion in investments as of November 2008.

The fund hopes to benefit from the trouble bigger banks and other institutional investors are having in recovering some of the money they placed in private-equity businesses amid financial turmoil stemming from a home mortgage meltdown.

Sales of such interests are occurring at deeply discounted prices of 50% to 70% or more from face value, private-equity executives say. (The Economic Times)