Goldman Sachs is raising a $1 billion fund to buy “hung bridge” debt from leveraged buyouts, peHUB has learned. It is called GS Liquidity Partners III, and is being marketed with a two-year term, 1.25% management fee and 20% carried interest. Goldman Sachs and its employees are expected to contribute $100 million.
The first GS Liquidity Fund was raised in 1998, following the Russian debt default and currency devaluation. The second one came in 2001, following the dotcom bubble burst. It’s unclear who runs the funds, as there is no mention of them on the GS website.
Goldman Sachs declined to comment.
If you’re interested in more on the hung bridge buying trend, I was on CNBC this morning to discuss it. Watch it here.