Goldman Sachs takes PE crown

Global ranking sees the embattled firm's private-equity arm rising to top spot

May 2, 2010 @ 12:01 am

By Hilary Potkewitz

While executives of The Goldman Sachs Group Inc. were getting grilled on Capitol Hill about deals involving mortgage-related securities, another division of the company quietly made headlines of a different sort.

Thanks to the firm's Principal Investment Area, the world's most controversial bank is now also the world's largest private-equity firm.

In a ranking of global private-equity firms, Goldman surpassed 800-pound gorillas such as The Carlyle Group, Kohlberg Kravis Roberts & Co. and Apollo Global Management LLC to take first place, according to Private Equity International, a trade publication. It uses a proprietary ranking methodology based on data from buyouts, growth equity, venture capital, control-oriented distressed investing and mezzanine debt.

Goldman's jump to first place was fueled by two impressive feats: The closing of a $13 billion mezzanine debt fund in 2008 and the closing of its $20.3 billion PE fund, GS Capital Partners IV, in 2007. It was also helped along by the financial crisis, which hurt private-equity firms with large investments in troubled banks.

The top spot on last year's list was held by TPG, the private-equity firm formerly known as Texas Pacific Group. TPG's fall in the rankings was largely due to its ill-fated lead role in a $7 billion investment in Washington Mutual just months before the federal government stepped in and seized the bank in September 2008.

Goldman has raised about $54.5 billion over the past five years for private-equity investment, compared with Carlyle's $47.8 billion and KKR's $47 billion. TPG, which raised $45.1 billion, and Apollo, with $43.7 billion, made up the top five biggest firms.

Goldman declined to comment.

Hilary Potkewitz is a reporter at sister publication Crain's New York Business.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

2019 concerns keeping successful advisory firm leaders up at night

These are the greatest business challenges for next year, according to InvestmentNews' Best Practices honorees.

Latest news & opinion

Some good news about female recruitment in financial advice

Each of four core advisory positions tracked in InvestmentNews' benchmarking study has seen an uptick in women entrants.

10 ETFs that are up more than 35% this year

Amid the stock market carnage, there are still some funds posting big gains.

10 biggest HSA providers rated

Morningstar rated the largest plan providers as investment and spending vehicles.

Morningstar: DOL fiduciary rule reduces inflows to mutual funds with high loads

With the measure's demise, will the SEC's advice reform sustain the momentum?

6 tax strategies for year-end planning

How to help clients maximize their wealth using specific tax strategies before the end of the year.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print