Goldman Sachs obtains $6 billion funding for their long-term European private credit investment plan
Goldman Sachs Alternatives' evergreen European private credit strategy, known as the GSEC fund, has reached a significant milestone, surpassing £4.5bn in total assets under management (AUM) as of mid-2025. This rapid expansion, achieved in less than a year since its launch in October 2023, is a testament to strong investor demand and the firm's effective capital raising capabilities within the European private credit market.
Positioned as an evergreen fund, the GSEC strategy is designed without a fixed maturity, allowing for continuous capital deployment. It focuses on the European direct lending market, targeting private credit investments that offer attractive risk-adjusted returns by providing financing solutions to mid-market companies. These investments primarily include senior secured loans, typically used for growth capital, acquisitions, and refinancings, thereby playing a crucial role in supporting private companies where traditional bank lending may be limited.
The key investment objectives for GSEC include generating stable and consistent income streams, preserving capital by focusing on senior secured positions, and capitalising on opportunities in the growing European private credit market. This strategy is part of Goldman Sachs' $142bn private credit platform, emphasising a focus on middle-market companies, leveraging Goldman Sachs’ extensive origination networks and credit expertise to identify high-quality investment opportunities.
Stephanie Rader, global co-head of alternatives capital formation at Goldman Sachs, has stated that the firm is actively engaging with existing and prospective clients regarding the various aspects of partnership, including education, that go hand in hand with evergreen products. James Reynolds, global co-head of private credit at Goldman Sachs Alternatives, has expressed that the £4.5bn raised by GSEC represents the opportunity-set within the European direct lending market and Goldman Sachs' differentiated positioning within that landscape.
The GSEC fund's diverse investor base includes third-party distributors, family offices, private wealth clients, sophisticated institutions, and Goldman Sachs employees. Notably, Tikehau Capital has also seen record inflows, with its AUM reaching €51bn. However, JP Morgan has predicted that variation in private credit manager performance will increase.
In summary, the GSEC fund, managed by Goldman Sachs Alternatives, stands as a sizable and fast-growing private credit strategy, designed as an evergreen vehicle targeting senior secured lending in Europe's middle market. This alignment of capital deployment flexibility with stable income generation and risk mitigation within the private credit landscape makes GSEC an attractive investment option for its diverse investor base.
- Businesses seeking growth capital, acquisitions, or refinancing in the European mid-market may find financing solutions through the GSEC fund, an evergreen private credit strategy managed by Goldman Sachs Alternatives, which focuses on investing in the European direct lending market.
- Investors, including family offices, sophisticated institutions, and Goldman Sachs employees, are attracted to the GSEC fund due to its alignment of capital deployment flexibility with stable income generation and risk mitigation, making it an attractive investment option within the growing European private credit market.
