Goldman Sachs Asset Management has begun preliminary talks with investors to raise at least $10 billion for a global direct lending fund, according to people with knowledge of the matter.
The fund, West Street Loan Partners VI, will focus on companies across North America, Europe and Australia, typically targeting businesses generating more than $100 million of earnings before interest, taxes, depreciation and amortization. Its predecessor fund raised over $13 billion in 2024.
Goldman is targeting returns of between 10%-12% on a levered basis for the fund, and 6%-7% on an unlevered basis, the people said. At least 80% of the portfolio is expected to consist of senior loan positions.
A representative for Goldman Sachs declined to comment.
The $1.8 trillion private credit market is facing challenges as concerns over exposure to software companies have triggered a wave of redemptions and prompted discounted share purchase offers from firms such as Boaz Weinstein’s Saba Capital Management.
Unlike many of its banking peers, Goldman Sachs has maintained a long-standing presence in private credit. The new fund would continue a strategy the firm first established during the global financial crisis with a $10 billion vehicle.
Written by: Silas Brown and Esteban Duarte @Bloomberg
The post “Goldman Sachs AM Seeks to Raise $10 Billion Private Credit Fund” first appeared on Bloomberg