Capital Markets

Gargantuans at the Gate

Goldman Sachs creates a $20 billion leveraged buyout fund.
Stephen TaubApril 23, 2007

Question: What can you buy with $20 billion?

Answer: Probably just about anything you want.

The buying power of private equity investors reached new heights Monday as Goldman Sachs Group Inc. announced it has closed a new $20 billion fund, the largest leveraged buyout fund ever to be created, according to Reuters.

The fund, called GS Capital Partners VI, includes $11 billion from qualified institutional and high net worth clients and $9 billion from the firm and its employees. Goldman said its sixth global fund will invest across a broad range of industries in a variety of situations, including leveraged buyouts, recapitalizations, and growth investments to fund acquisitions or expansion.

Goldman Sachs’ Principal Investment Area has grown to over 125 investment professionals in New York, London, Hong Kong, Tokyo and San Francisco. Goldman’s previous investments include Aramark Corp., Burger King Holdings, Polo Ralph Lauren, SunGard Data Systems and Western Wireless.

Previously, the largest buyout fund to officially close in the last year was TPG, raising $14 billion, according to Reuters.

Last year, Blackstone Group closed a $15.6 billion fund, according to the wire service. The fund was subsequently reopened to more commitments this year.

Reuters also noted that Kohlberg Kravis Roberts & Co. is expected to close on a roughly $16 billion fund.