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The private sale is stuck in a deadlock, and Goldman Sachs has found a profitable path.
Jin10 reported on September 3 that it is seeking to seize opportunities to help private equity clients who are trapped in the "investment but difficult to exit" dilemma. The bank's asset management business is raising several of its largest funds, aiming to support private companies and their portfolio companies that are facing funding shortages. In the current environment of sluggish M&A and IPO activities, many private equity firms are struggling to return funds to their investors and are working to alleviate the resulting liquidity predicament. According to informed sources, Goldman Sachs is currently in discussions with investors to promote a fund with a scale of $10 billion, which will provide a "hybrid capital" financing solution combining equity and debt. Such funds essentially provide additional financing to enterprises controlled by private equity firms, which can then reverse the funds back to the parent company in the form of dividends, thereby helping private equity funds achieve partial exits or returns for investors. In addition, Goldman Sachs is also advancing the fundraising of a flagship secondary fund of $15 billion.
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