Key facts
- Goldman Sachs' private credit fund saw investors seek to repurchase 3.24% of its shares in Q2.
- This is lower than the 5% quarterly repurchase cap and was fully met.
- Peer repurchase requests for non-traded BDCs ranged from 10% to nearly 17% of shares outstanding.
- The fund generated $275 million in gross inflows during the second quarter.
- Goldman believes established companies' moats will defend against AI disruption.
Goldman Sachs' private credit fund has once again managed to avoid significant redemption pressure, reporting that investors sought to repurchase only about 3.24% of its total shares in the second quarter. This figure extends the fund's streak of lower redemption requests compared to many other players in the private credit industry, which have been contending with elevated requests.
The bank stated that the second-quarter repurchase requests were fulfilled in full and remained below its 5% quarterly repurchase cap. In contrast, Goldman noted that for the largest non-traded Business Development Companies (BDCs) reporting activity, peer repurchase requests have generally ranged from approximately 10% to nearly 17% of shares outstanding.
During the second quarter, the Goldman fund generated roughly $275 million in gross inflows. The firm also addressed concerns about artificial intelligence potentially weakening the earnings of software companies and their ability to repay loans. Goldman Sachs expressed its belief that established companies possess strong "incumbency moats"—including mission-critical workflows, proprietary data, deep domain expertise, regulatory complexity, and customer trust—which provide powerful defensibility.
Reuters previously reported that a substantial portion of the fund's investors were sourced through Goldman's private wealth channels. These clients are described as long-term investors in private credit, better positioned to withstand illiquidity.