Goldman Sachs closed a $229 million preferred equity investment in a portfolio of Colony Credit Real Estate investments. An initial $200 million was made in a portfolio of five underlying Colony Credit Real Estate interests. Colony Credit Real Estate will have the ability to draw down an additional $29 million in additional commitments for future allocations to the portfolio. Goldman Sachs made the investment from its Vintage Real Estate Partners II.
Goldman Sachs’ Vintage Funds today announced closing on a $229 million preferred investment in a portfolio of Colony Credit Real Estate (“CLNC”) investments from their second dedicated real estate fund, Vintage Real Estate Partners II.
The initial $200 million investment was made in a portfolio of five underlying CLNC investment interests managed by affiliates of CLNC’s manager: one wholly-owned triple-net industrial distribution investment leased to a national grocery chain and four co-investments.
“Goldman Sachs’ Vintage Funds provided strategic capital and expertise that allow us to retain flexibility and position these assets for future growth,” said Andrew Witt, Chief Operating Officer of CLNC. “The Goldman Sachs team is a value-added partner that shares our commitment to maximizing value on behalf of our shareholders and other constituents.”
The preferred financing investment doesn’t impact the manager’s discretion with respect to the continuing investment and portfolio management of the investments. CLNC will also have the ability to draw down up to $29 million in additional commitments for future allocation to the portfolio.
“The Vintage program has a long-standing relationship with Colony, and we were excited to work together on this transaction,” said Sean Brenan, Managing Director, Goldman Sachs. “We are gratified to participate in this opportunity, which allows us to provide a timely, efficient and creative solution to our investment partner.”
About the Vintage Funds and Goldman Sachs Alternative Investments
With over $38 billion in committed capital since inception, the Vintage Funds have been innovators in the secondary market for over 20 years. Investing globally and across a range of asset classes, the Vintage Funds provide liquidity, capital and partnering solutions to private market investors and managers worldwide.
Goldman Sachs is one of the world’s leading investors in alternative investments. With over 30 years of experience, we invest in the full spectrum of alternatives, including private equity, growth equity, credit, real estate, infrastructure, ESG, and absolute-return strategies. Our clients access these solutions through our direct proprietary strategies, customized strategic partnerships, and open-architecture programs. Our alternative investment teams represent over 1,300 professionals, across 31 offices around the world. We leverage the depth and breadth of global relationships across Goldman Sachs to identify investment opportunities, drawing on our firm-wide capital market insights, industry research, and risk management platforms. We extend these capabilities to the world’s leading pension plans, sovereign wealth funds, governments, financial institutions, endowments, foundations, family offices and individuals, for which we invest or advise on over $300 billion of alternative investments.