Goldman holds final close for latest real estate credit fund

West Street Real Estate Credit Partners IV will have more than $7bn of lending capacity.

Goldman Sachs Alternatives has closed West Street Real Estate Credit Partners IV, its latest real estate credit fund. The fund, which includes related vehicles, will have more than $7 billion of lending capacity including leverage.

The fund surpassed its target and is the largest to date in the firm’s series, according to PERE data. It comes at a time when there is a significant supply and demand imbalance for real estate credit, said Richard Spencer, chief investment officer for real estate credit at Goldman Sachs Alternatives.

“We believe this is creating attractive opportunities for alternative lending sources that can provide size and certainty of execution to borrowers,” Spencer added.

Investors include new relationships as well as longstanding participants who increased allocations to the strategy, according to the firm. The fund’s investors included sovereign wealth funds, insurance companies and US and international pension plans. Additionally, investors from family offices, Goldman Sachs Private Wealth Management and third-party wealth channels also made commitments.

Jeff Fine, global co-head of alternatives capital formation, noted the firm’s real estate credit offering has become an increasingly important allocation for institutional and wealth clients. This is evidenced by the fund’s expanded investor base and increased commitments from existing clients.

“For investors seeking attractive risk-adjusted returns across cycles, real estate credit is an excellent diversifier to private credit and real assets exposures,” Fine added.

To date, the fund has made more than $1.8 billion of commitments across eight investments. Additionally, it will be the first fund in the series to make disclosures under Article 8 of the European Sustainable Finance Disclosure Regulation.