NEW YORK CITY—Goldman Sachs has closed Broad Street Real Estate Credit Partners II at more than $4 billion, the investment bank said Wednesday morning. It plans to extend credit to borrowers in Europe as well as the US, the first time Goldman’s merchant banking division has done so through such a fund.
“The flexibility to invest across the capital structure and against all major asset classes is a distinct competitive advantage in creating unique financing solutions for our borrowers,” says Peter Weidman, a managing director with the MBD, who will oversee RECP II. “Since our first closing, we have already invested over $500 million and we continue to see an attractive pipeline of investment opportunities in both the US and Europe.”
RECP II will make senior loans and mezzanine loans backed by high quality commercial real estate assets, to fund acquisitions, refinancings and recapitalizations in the US and Europe. “RECP II will build upon the strong performance of our first fund, which invested over $3.5 billion in high quality loans, and our team’s proven track record in creating solutions on complex transactions,” says Alan Kava, co-head of MBD’s real estate investing group.
Kava told Bloomberg that the fund raised $1.8 billion in equity pledges from institutions and wealthy individuals—including repeat investors from RECP I—supplemented by an equal amount in borrowings and $600 million of Goldman’s own money. “We’re hopeful we will end up with about 50-50” divided between the US and Europe, Kava told Bloomberg.