Goldman's Petershill raises $2.5bn for GP stakes

Petershill III has a target of 2x return on investing capital with a 20% IRR, according to minutes of a meeting of the Public Employees Retirement Association of New Mexico (PERA), which has committed $150m to the fund.

The fund has been kept exclusive to a small number of institutional investors, with a maximum number of 15, each serving on an advisory committee and introduced to each GP.

PERA executives believe the strategic partnership with Goldman Sachs may improve its access to oversubscribed funds, as well as foster relationships with mid-market GPs. It also said it was a good strategy due to the maturing of the private equity industry.

The fund held a first close in February 2017 on $500m and had an initial target of $2bn. Other asset managers following a similar strategy are Blackstone and Dyal Capital Partners.

Petershill III will invest in GPs managing $5-20bn of assets, according to the Wall Street Journal. Eventually, Goldman could cash in on its positions by selling stakes or listing them.

"If you're a public investor, there are not a lot of ways to invest in private equity through the public markets," Michael Brandmeyer, co-chief investment officer of Goldman's alternative investments and manager selection group, told the Wall Street Journal. "We think there could be a potentially enthusiastic audience for a listing."

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• Topics
• Funds
• GPs
• Goldman Sachs
• Goldman Sachs Asset Management