Goldman Sachs Group Inc.’s asset management arm raised $4 billion for a new mid-market infrastructure fund.
The New York-based firm closed West Street Infrastructure Partners IV with commitments from institutional investors, high-net worth individuals and Goldman Sachs employees, according to a statement Monday.
Investors are pouring money into everything from toll roads to power networks as they seek out assets that can deliver steady returns and guard against inflation, even as the broader environment for private equity fundraising falters.
“The fund is now well-seeded and diversified,” Philippe Camu, chairman of infrastructure at Goldman Sachs Asset Management, said in an interview. GSAM has made investments across the digital, transport and logistics, social infrastructure and energy transition sectors, he said.
“Energy transition is a theme with significant tailwinds and it affects every subsector of infrastructure, creating exciting investment opportunities,” Camu said.
The fund has already committed $2.3 billion to eight companies, according to the statement. Its deals include take-privates of Finnish school construction firm Adapteo Oyj and Norwegian aquaculture service group Frøy ASA. It’s also invested in US renewable natural gas plant operator Synthica Energy and utility-grade battery storage developer GridStor.
The firm said last month it raised about $1 billion for an infrastructure secondaries fund called Vintage Infrastructure Partners I.
While infrastructure acquisitions have proven to be more resilient than other areas of dealmaking, volatile markets, tough financing conditions and a widening bid-ask spread are all weighing on private equity firms trying to execute investments.
“We tend to avoid competitive auctions and look for opportunities where we can find relative value,” Scott Lebovitz, GSAM’s co-head of infrastructure, said in an interview.
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