One of the largest first-time Growth Equity funds in history
Fund will invest in high-growth businesses with strong market positioning globally
February 7, 2023 | 3 Minute Read
New York – 7th February 2023 – Goldman Sachs Asset Management (“Goldman Sachs”) today announced the final close of West Street Global Growth Partners (“the fund”).
The fund, which closed at $5.2bn, is Goldman Sachs’ inaugural direct private markets fund dedicated to investing in high-growth businesses with strong market positioning, high growth rates and durable business models. The fund represents the continuation of Goldman Sachs’ longstanding proprietary growth investing strategy.
The fund exceeded its initial fundraising target to close on $5.2 billion, including $3.7 billion of commitments from a diverse group of institutional and high net worth investors globally, alongside a significant commitment from Goldman Sachs and its employees – making it one of the largest first-time growth equity funds raised in history.
The fund is managed by the Growth Equity business within Goldman Sachs Asset Management, which is led by Darren Cohen, Nishi Somaiya and Stephanie Hui – based in New York, London and Hong Kong respectively. They lead one of the largest global growth equity teams, combining a deep local presence in markets across the US, Europe and Asia with insights and capabilities across sectors. The team has navigated multiple market cycles and environments to deliver consistent returns. The team seeks to harness the expansive relationship networks and resources of the Goldman Sachs platform to source differentiated investments and help portfolio companies scale their businesses, expand their geographical footprint, and drive long-term value creation.
Julian Salisbury, Chief Investment Officer for Asset & Wealth Management at Goldman Sachs, said:
“Goldman Sachs has a decades-long history of backing the world’s leading founders and bringing the full resources of the firm to help them scale and build category-defining businesses.
“We believe the pace of innovation across enterprise technology, financial technology, healthcare, and consumer businesses shows no sign of abating, and we are excited to work closely with portfolio companies to navigate volatility and reach the next stages of growth.
“Our global team, drawing on the firm’s extensive networks and deep relationships, is well-positioned to identify unique opportunities and create value for investors. We are grateful for the support of our LPs in partnering with us on this inaugural fund.”
The fund seeks minority stakes in businesses with an average investment size of approximately $50 million and will invest across the lifecycle of the growth equity market. Building on the team’s deep global domain expertise, unique competitive position and extensive investment experience, target sectors for the fund are Enterprise Technology, Financial Technology, Healthcare and Consumer.
The team’s unique vantage point within the Goldman Sachs platform enables it to identify disruptive forces and trends within these sectors early and to source unique opportunities for investment. This positions them to be a partner of choice for founders and CEOs of the leading growth companies.
The fund leverages Goldman Sachs’ proprietary operating platform, the GS Value Accelerator, to work with portfolio companies to build transformative businesses and create incremental value. The Value Accelerator includes a global network of operating advisors and sector experts who can support companies in scaling revenue, operational excellence, digital transformation, talent strategy and ESG optimization.
West Street Global Growth Partners has already invested in a number of companies, diversified by geography and industry, including 4G Clinical, a leader in the randomization & trial supply management market, AlphaSense, a market intelligence software company, Exotec, a robotic warehouse systems provider, Fortanix, a multi and hybrid cloud data security platform, Locus Robotics, a proprietary warehouse automation solution provider, MegaRobo, a life sciences robotics solutions provider in China, Starling Bank, a U.K.-based digital challenger bank, and Xempus, a corporate pension and life insurance distribution platform in Germany1.
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of December 31, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.
1Top five fund deals by invested cost made in 2022 and top three fund deals by invested cost made in 2021.