Goldman Sachs Asset Administration has launched a brand new non-public credit score technique centered on local weather and environment-related companies, which has already attracted $1bn (£770m) in commitments.
The local weather credit score technique is concentrated on senior debt, with the power to take a position throughout the capital construction.
It’s managed by the non-public credit score enterprise at Goldman Sachs Options.
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The asset supervisor mentioned that there’s rising demand for personal debt funding for sustainable-focused investments, because of regulatory modifications, tax incentives and the maturation of local weather transition industries.
It highlighted that far much less non-public debt capital had been raised for a majority of these investments in comparison with the quantity of personal fairness capital raised, resulting in important alternatives for lenders.
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“We see important alternatives to deal with the supply-demand imbalance in non-public credit score options associated to local weather transition,” mentioned James Reynolds, world co-head of personal credit score at Goldman Sachs Options.
“Substantial capital has been raised for personal fairness funding within the area and debt options are wanted to offer additional scale. We sit up for partnering with main firms and monetary sponsors to ship efficiency for our shoppers and are deeply appreciative of the assist now we have obtained so removed from traders on this new technique.”
Goldman Sachs Options’ non-public credit score enterprise manages $125bn of belongings throughout direct lending, mezzanine debt, hybrid capital and asset-based lending methods.
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