Goldman Sachs announced today that it has closed its second real estate credit fund, Broad Street Real Estate Credit Partners II (RECP II), with over $4 billion in total capital available to invest, including expected leverage. Limited partners in RECP II include existing as well as new institutional and private investors from throughout the Americas, Europe and Asia. RECP II will be managed by the real estate group within Goldman Sachs’ Merchant Banking Division (MBD). With this new vehicle, Goldman Sachs will be able to offer these lending capabilities to borrowers in Europe for the first time, building on its track record in the United States.
“The flexibility to invest across the capital structure and against all major asset classes is a distinct competitive advantage in creating unique financing solutions for our borrowers”
“RECP II will build upon the strong performance of our first fund, which invested over $3.5 billion in high quality loans, and our team’s proven track record in creating solutions on complex transactions,” said Alan Kava, co-head of MBD’s real estate investing group. “We are thankful for the continued support of the repeat investors from our first fund and are excited by the strong group of new investors that have expressed confidence in our strategy and the talented team we have in place.”
RECP II seeks to generate attractive risk-adjusted returns through the creation of a diversified pool of investments in both senior and mezzanine loans collateralized by high quality real estate assets. The Fund’s primary focus will be to create strong current yield for its investors through the origination of loans to facilitate real estate acquisitions, refinancings and recapitalizations throughout the United States and Europe. As one of the largest global investors in private real estate credit, the team’s dedicated platform, strong sponsor relationships and access to the entire Goldman Sachs network ensures comprehensive coverage of the market and allows for the creation of unique lending opportunities.
Jim Garman, the London based co-head of MBD’s real estate investing group added, “The size of our capital pool combined with the depth of our local real estate knowledge allows us to provide borrowers with customized loan structures on large, complex transactions with speed and certainty of execution. We are excited to add credit investing to our European platform which will allow us to build upon our long history of investing in this region.”
“The flexibility to invest across the capital structure and against all major asset classes is a distinct competitive advantage in creating unique financing solutions for our borrowers,” said Peter Weidman the Managing Director who oversees RECP II for MBD. “Since our first closing we have already invested over $500 million and we continue to see an attractive pipeline of investment opportunities in both the US and Europe.”
RECP II is the second real estate credit fund raised by the Merchant Banking Division (MBD). MBD is the primary area for Goldman Sachs’ long term principal investing activity, investing in equity and credit across corporate, real estate and infrastructure strategies. Since its founding over 25 years ago, Goldman Sachs has operated MBD as an integral part of the firm having raised over $125 billion for investment in these strategies. With eight offices in six countries around the world, MBD is one of the largest managers of private capital globally, offering deep expertise and long-standing relationships with companies, investors, entrepreneurs and financial intermediaries around the globe.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world
Source: Business Wire
