Chidem Kurdas
Credit specialists are notable among the outside advisers chosen for a Goldman Sachs multi-strategy vehicle, though a couple of equity managers have been named as well. All are well-established, multi-billion-dollar businesses.
One pick is Ares, a business development company focused on alternative credit strategies including event-driven, private debt and commercial real estate. Goldman and Ares are familiar with each other. They worked on deals together and a few of the bank’s high-end employees decamped to Ares, which has $59 billion in assets.
Another is Donald Morgan and Patrick Kelly’s Brigade Capital, a global high-yield and bankruptcy reorganization expert with $12.7 billion in assets.
Swiss-headquartered GAM International is to invest a bond portfolio for the Goldman fund. GAM manages $53.3 billion in single- and multi-manager funds with a variety of strategies.
The equity portion of the Goldman fund is to be invested by Karsch Capital in New York and Lateef Investment Management in California. Karsch has a long/short strategy. Lateef portfolio managers Quoc Tran, James Tarkenton and Matthew Sauer specialize in value investing.
The Goldman fund requires an exemption from the US Securities and Exchange Commission to allow the hiring of managers without shareholder voting on each hire. Other fund of funds operators have applied for similar exemptions.
Tags: Ares Capital, Banks, Brigade Capital, GAM International, Investment strategy, US Securities and Exchange Commission
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