Goldman Sachs’ reliance on longer-term institutional investors has helped its $15.7bn private credit fund weather the retail-driven withdrawals affecting much of the sector this year, according to a report by Bloomberg.
The fund, a non-traded business development company, saw first-quarter redemptions of just under 5% of its outstanding shares – well below the levels faced by peers such as Blue Owl Capital.
The retreat of retail capital is creating opportunities for institutions like Goldman Sachs, which is raising a separate $10bn direct lending fund, to deploy capital amid easing competition in the $1.8tn private credit market. Analysts say the pullback could allow lenders to secure more favourable spreads, covenants, and terms, though the impact on portfolios will take time to materialise.
Despite the broader outflows, Goldman’s fund reported positive net inflows of around $1.04bn and a modest 0.4% return through February. Fund managers highlighted that lenders insulated from retail withdrawals can negotiate stronger protections while borrowers may face higher borrowing costs.
