Goldman raises $1.5 billion in infrastructure fund first close: sources

Thomson ReutersThe Goldman Sachs logo is displayed on a post above the floor of the New York Stock Exchange

By Olivia Oran

(Reuters) – Goldman Sachs Group Inc closed the first stage of fundraising for its newest infrastructure fund with about $1.5 billion, according to people familiar with the matter.

The fund, which completed its first close late last year and is targeting $3 billion, has since reached $1.8 billion in capital raising, the people added, asking not to be named because the matter is private.

A spokeswoman for Goldman declined to comment.

Goldman’s last infrastructure fund raised $3.1 billion in 2010. Goldman has raised more than $10 billion in investments in infrastructure since 2006, according to its website.

Investors are increasingly looking to infrastructure, which includes assets such as airports, bridges and toll roads, as an alternative to low-yielding fixed income products with more stable returns than traditional private equity.

Morgan Stanley said in March it had raised $3.6 billion for its second infrastructure fund.

Other private equity firms are looking to raise large infrastructure funds.

ArcLight Capital Partners last year closed a $5.6 billion fund focused on energy infrastructure investments and KKR & Co LP also closed a $3.1 billion fund.

Global Infrastructure Partners is seeking to raise as much as $15 billion for its third fund, according to reports last year.

(Reporting by Olivia Oran in New York; Editing by Alan Crosby)

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