Goldman Sachs is planning to invest alongside hedge funds and private credit firms through a new $700m fund.
Dubbed ‘Union Bridge’, the new co-investment strategy will identify investment opportunities in public and private markets that fall “outside the mandate of traditional market participants,” the firm said in a 21 March announcement.
The new fund is part of Goldman Sachs’ $340bn external investing group. The $700m was raised from a wide range of investors including institutions, family offices, and private wealth clients.
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The amount also included “significant commitments” from Goldman Sachs employees, the announcement added.
“We have seen a significant increase in the opportunity to partner with our external managers to provide flexible capital solutions to companies across public and private markets,” Philip Pallone, who leads the Union Bridge programme, said in a statement.
Last year was a bumper one for some of the world’s biggest hedge funds. Chris Hohn’s TCI Fund Management made roughly $13bn in 2023. Ken Griffin’s hedge fund Citadel made $8bn and Israel Englander’s Millennium Management made $5.7bn, according to Forbes.
A February report from Barclays shows institutional investors are bullish about the future of hedge funds. The report, which surveyed 315 investors including private banks and family offices, found that 85% of the investors are planning to make at least one allocation to a hedge fund in 2024, compared to 80% in 2023.
Amid optimism around the hedge fund industry, a new crop of high-profile hedge fund managers are planning debuts in 2024. According to hedge fund research firm PivotalPath, 40 big-name hedge fund launches are expected this year.
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