1 See, for instance, Robert S Harris, Tim Jenkinson and Steven N. Kaplan, “How Do Private Equity Investments Perform Compared to Public Equity?” (Journal of Investment Management, 2016), and “Has Persistence Persisted in Private Equity? Evidence from Buyout and Venture Capital Funds” (SSRN, March 2022); and “Performance Analysis and Attribution with Alternative Investments” Matteo Binfare, Gregory Brown, Andra Ghent, Wendy Hu, Christian Lundblad, Richard Maxwell, Shawn Munday, and Lu Yi—January 2022.
2 Cambridge Associates. Based on inception-to-date performance of funds across vintage years 2000-2017.
3 S&P, NAREIT. Computed using monthly total returns on the S&P 500 and FTSE NAREIT All-REIT indices, from 2/1988 to 9/2001 and 10/2001 (the first month of REIT inclusion in the S&P 500) to 4/2022.
4 Based on average age of company at IPO; source: Professor Jay Ritter, as of December 21, 2021.
5 Binfare, Brown et al, “Performance Analysis and Attribution with Alternative Investments,” January 2022.
6 PitchBook, World Bank, McKinsey as of 6/30/2021.
7 See, for instance, Haque, Sharjil, “Does Private Equity Systematically Over-Lever Portfolio Companies?”, July 30, 2021; and Belyakov, Alexander, “Economics of Leveraged Buyouts: Theory and Evidence from the U.K. Private Equity Industry”, March 19, 2020.
8 Defining Alpha…It’s Skill, Not Excess Return, 361 Capital, June 2017.
9 Goldman Sachs Global Investment Research.
10 Alternative Investments, Market Divergence, Dislocation, and Momentum, 2016.
11 Bloomberg, 2021.
12 Goldman Sachs Asset Management, AIMS Hedge Funds Team, May 30, 2022.
Alpha refers to returns in excess of the benchmark return.
Beta refers to the tendency of a security’s returns to respond to swings in the markets
Beta Agnostic describes funds that are not managed to a particular beta level
Co-investment portfolios comprise direct investment positions made alongside a General Partner
Correlation is a statistic that measures the degree to which two securities move in relation to each other.
Dislocation Trading describes market activity in securities where the price is disconnected from the fundamentals
Directional managers pursue a strategy that has net long or short exposure
Distressed managers seek opportunities arising from corporate stress
Event Driven Managers trade around major corporate events, including mergers, regulations, and earnings announcements
IRR is the discount rate that makes the net present value of all future cash flows zero
Macro managers trade in a range of markets base their strategy on top-down macroeconomic analyses
Market-neutral strategies maintain zero net exposure to the market, seeking to achieve gains regardless of market conditions
Merger arbitrage is a strategy predicated on capturing mispricing around merger activity
Opportunistic Financings typically include bespoke terms to meet specific needs occur during times of corporate or economic stress
Private credit refers to non-bank lending that is not issued or traded in public markets.
Private equity (PE) refers to investments in the equity or debt of companies that are either not listed on public exchanges or are taken private shortly after they are acquired
Real Assets describes investments into physical structures and commodities, including infrastructure and energy
Relative value managers seek to exploit temporary differences in the prices of related securities
Secondary vehicles acquire stakes in existing private equity funds
Strategy Agnostic describes managers or funds that to not pursue a specific strategy
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There may be conflicts of interest relating to the Alternative Investment and its service providers, including Goldman Sachs and its affiliates. These activities and interests include potential multiple advisory, transactional and other interests in securities and instruments that may be purchased or sold by the Alternative Investment. These are considerations of which investors should be aware and additional information relating to these conflicts is set forth in the offering materials for the Alternative Investment.
Date of First Use: August 4, 2022. 282941-OTU-1634881