According to sources, Goldman Sachs is considering launching a new infrastructure fund and could begin the fundraising process before the end of the year.
Goldman Sachs Infrastructure Partners closed two infrastructure funds in 2006 and 2010, GS Infrastructure Partners I (GSIP) and GS Infrastructure Partners II respectively. GS Infrastructure Partners I raised US$6.5 billion while GS Infrastructure Partners II raised US$3.1 billion.
The primary focus for those funds was on investment opportunities with the following parameters:
The new fund is expected to have the same investment policy as the two previous funds.
The firm could find problems on the way due to a federal regulation known as the "Volcker Rule". It restricts banks from owning more than 3% of an infrastructure fund or any other private equity-type fund. Before this restriction, Goldman Sachs would generally invest about 10% of the capital of its infrastructure funds and between 30% to 35% of its private equity funds.
According to Reuters the bank could make use of a loophole in the Volcker Rule to invest any amount of its own money in infrastructure assets by using use a fund that dos not include outside investors.
There is no target size or fundraising start date confirmed for the fund yet.