Former Goldman Sachs Group Inc partners Tom Connolly and Mike Koester are looking to capitalise on the recent growth in the burgeoning private credit space with the launch of a new, New York-based firm, 5C Investment Partners.
In an interview on Thursday, Koster said: “Direct lending is playing a very important role during a market dislocation that is persistent,” referring to regulation that has curbed bank lending since 2008. And new private credit firms as well as existing alternative asset managers, are increasingly replacing banks as providers of multi-billion financings to companies.
Connolly and Koester are no strangers to private credit having helped Goldman develop its direct lending business and raised a $10 billion credit fund following the collapse of Bear Stearns.
5C, which describes itself as a credit-centric alternative investment firm, will initially focus on the US, with scope to expand in Europe.
Connolly, who was made partner at Goldman in 2004 and held roles including global co-head of private credit, left the firm last yearm while Koester, who became partner in 2008 and held roles including co-president of alternatives of Goldman Sachs Asset Management, left in April.
