Through the fund, individual investors will have direct access to investments in the private market that are managed by Goldman Sachs Asset Management, a global investment firm with more than 35 years of experience in the sector.
Additionally, Goldman Sachs Asset Management has alternative assets worth more than $450bn.
Through the Private Markets ELTIF 2023, Goldman Sachs intends to provide broad coverage of investments across a wide range of industries and strategies, with a focus on private equity and a lesser allocation to higher yielding private credit.
Despite its diversification, the portfolio’s composition is expected to follow the market segments with the most active transaction activity, favouring the most attractive industries and investing strategies in a rapidly changing investment environment.
The fund’s purpose is to be globally diversified.
Though it is theoretically designed for high-net-worth individuals who can make a longer-term illiquid investment, the fund will be totally funded at launch and is expected to have a short investment time.
Goldman Sachs Asset Management’s alternatives platform comprises over 1,000 specialist investment professionals that leverage on Goldman Sachs’ broader capabilities to get access to a unique sourcing network.
The alternatives platform is led by a seasoned international team that combines a strong local presence in markets around the US, Europe, and Asia with sector-specific global insights.
To find unique investments and quicken value creation for portfolio firms, the team aims to take advantage of the vast relationship networks and capabilities of the Goldman Sachs platform.
Barry Fricke, EMEA head of alternatives distribution for wealth at Goldman Sachs Asset Management, said: “Institutional investors have long benefitted from private investments, which have the potential to provide higher returns, portfolio diversification, and access to unique opportunities. Now, individuals will also be able to get exposure to private investments through our Private Markets ELTIF, a fund specifically designed to meet the needs of individual investors. This fund is part of a broad and deep commitment to open up our private markets business to suitable individual investors through innovative and high-quality products, supported by education and training for our wealth management distribution partners.”