Goldman Sachs has raised a $10bn fund to invest in loans backing leveraged buy-outs, taking advantage of a gap in the financing markets created by the credit crisis. The new fund comes in addition to an existing $20bn Goldman fund that invests in “mezzanine” debts. Between the two funds, Goldman can now commit to financing sizeable deals itself without having to go through the long and sometimes painful process of recruiting outside investors for the debt. Goldman’s new loan fund, which will operate under its private equity arm, is the latest example of the accelerating convergence between private equity and debt investing.
