Goldman Sachs Asset Management has launched a new private credit strategy focused on climate and environment-related businesses, which has already attracted $1bn (£770m) in commitments.
The climate credit strategy is focused on senior debt, with the ability to invest across the capital structure.
It is managed by the private credit business at Goldman Sachs Alternatives.
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The asset manager said that there is rising demand for private debt funding for sustainable-focused investments, due to regulatory changes, tax incentives and the maturation of climate transition industries.
It highlighted that far less private debt capital had been raised for these types of investments compared to the amount of private equity capital raised, leading to significant opportunities for lenders.
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“We see significant opportunities to address the supply-demand imbalance in private credit solutions related to climate transition,” said James Reynolds, global co-head of private credit at Goldman Sachs Alternatives.
“Substantial capital has been raised for private equity investment in the space and debt solutions are needed to provide further scale. We look forward to partnering with leading companies and financial sponsors to deliver performance for our clients and are deeply appreciative of the support we have received so far from investors in this new strategy.”
Goldman Sachs Alternatives’ private credit business manages $125bn of assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies.
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