Goldman Sachs Plans To Shifts Capital To Distressed Debt From Its Private Equity Fund

Goldman Sachs Group Inc. is asking investors in its $15 billion private equity fund for approval to shift much of its remaining uninvested money into distressed debt, according to the Financial Times. Goldman plans to allocate $4.5 billion of the

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Goldman Sachs Group Inc. is asking investors in its $15 billion private equity fund for approval to shift much of its remaining uninvested money into distressed debt, according to the Financial Times.

Goldman plans to allocate $4.5 billion of the $9 billion remaining in the fund to stressed and distressed investments and increase open market purchases of both debt and equity securities from 10 to 25% of total commitments, the report said.

A further $1.5 billion will go to firms that Goldman already owns to help them buy their own debt. Only $3 billion will be allocated to buy-outs, which was the original focus of the fund.

According to the report, Goldman has invested $2 billion in the fund, including a recent $500 million additional injection.

D.C.

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