Goldman Sachs Group, through its Goldman Sachs Alternatives division, just raised from third parties $3.6 billion for its CRE debt fund, West Street Real Estate Credit Partners IV, according to Bloomberg. The amount is a record for the company, leaving its previous $2.6 billion fund far behind.
Goldman is also adding an additional $1.4 billion capital from its balance sheet, bringing the fund's total to $5 billion. Adding $2 billion in leverage, that means $7 billion to invest. After fees, the target return is reportedly in the 10% to 12% range. Of the total, $1.8 billion is reportedly already committed.
"The strategy really is to capitalize on what we think is a growing supply-and-demand gap for real estate debt financing," Richard Spencer, chief investment officer for real estate credit at Goldman Sachs Alternatives, told Bloomberg in an interview.
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