The article discusses the evolving relationship between Limited Partners (LPs) and General Partners (GPs) in the private equity industry. LPs are seeking greater transparency and control over their investments, while GPs are trying to maintain their authority. The article highlights the challenges and opportunities arising from this shift, including the rise of alternative investment vehicles and the increasing use of data analytics to evaluate fund performance.
Goldman Sachs has announced plans to establish a $10 billion fund to address the logjam in the private equity market. This move comes as the bank seeks to capitalize on the growing demand for private equity investments and provide liquidity to investors who have been struggling to exit their positions [1].
The fund, managed by Goldman Sachs Asset Management, will focus on providing financing to private equity firms looking to sell their assets. It will also target buyout transactions and other private equity investments, allowing firms to raise capital more efficiently [1]. Goldman Sachs believes this $10 billion fund will alleviate the current logjam, caused by a slowdown in deal activity and a lack of liquidity.
The announcement follows Goldman Sachs' recent decision to initiate coverage of Brookfield Corp with a Buy rating and a $78 price target. The bank expects Brookfield to generate more capital, which could accelerate shareholder returns, with net capital generation of about $11 billion between 2025 and 2027 [2].
This initiative underscores Goldman Sachs' commitment to the private equity market and its ability to adapt to changing market conditions. The fund is expected to be launched in the coming months, with significant resources allocated to its management and execution [1].
References:
[1] https://www.ainvest.com/news/goldman-plans-10-billion-fund-ease-private-equity-logjam-2509/
[2] https://www.investing.com/news/stock-market-news/goldman-sachs-starts-brookfield-at-buy-sees-excess-capital-fueling-buybacks-4219371
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