Goldman Sachs targets USD 3 bn for new climate strategy

Goldman Sachs Asset Management (GSAM) aims to raise up to USD 3 bn for a new climate credit strategy dubbed the West Street Climate Credit Fund, Bloomberg reported last week, citing sources familiar with the matter. GSAM will use the fund to lend to energy transition companies in North America and Europe with a target set for 8-10% net returns on an unlevered basis and 13% for levered, the sources added. GSAM plans to funnel USD 150 mn into the fund, which will reside within its USD 145 bn private credit unit. The fund will mainly focus on senior lending but will be open to considering junior debt as well.

Making up for cutbacks? Goldman Sachs Asset Management withdrew from Climate Action 100+ — the world’s largest climate alliance for investors — last year amid attacks from Republicans. The move followed similar withdrawals by major firms, including AllianceBernstein, JPMorgan Chase’s asset management arm, and Pacific Investment Management.