Goldman’s $18.2bn private credit fund sees redemption requests fall to 2%
Goldman Sachs’ $18.2bn private credit fund recorded another decline in investor redemption requests during the third quarter, bucking the elevated withdrawal levels reported across much of the private credit market, according to a report by Reuters.
Goldman Sachs' $18.2 billion private credit fund, known as GS Credit, saw a decrease in investor redemptions during the third quarter, according to a report by Reuters. The fund received only 2% of shares in repurchase requests, compared to 3.2% in the previous quarter. This is a stark contrast to the high redemption levels reported by many other private credit funds, with some receiving between 10% and over 16% of shares.
The fund has seen less redemption pressure due in part to a large portion of its investor base being through private wealth channels, where investors often have a longer investment horizon and may be more accepting of less-liquid assets. The broader private credit sector has faced persistent redemption pressure due to concerns about underwriting standards and the financial stability of heavily indebted software companies facing disruption from artificial intelligence.
However, GS Credit noted that these concerns had lessened during the third quarter as the market moved on from the sharp increase in credit spreads earlier in the year. The fund reported $400 million in gross subscriptions during the quarter, indicating ongoing investor interest. Through August 31st, Class I shares had generated a total return of approximately 9.4%.
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