Goldman Sachs has raised $10.3 billion to create a fund that will be used as a vehicle to buy stakes in private equity firms, Bloomberg reported.
Per the report, Goldman Sachs’ (GS) global head of secondary investing, Harold Hope said in an interview that the fund will be used for “non-traditional” deals, including the acquisition of stakes that buyout firms would want to spin-off.
“We’re allowing existing private equity managers to have another go around at that asset, and not have to sell it to someone else before they are ready,” Hope told Bloomberg. (See GS stock analysis on TipRanks)
On Oct. 19, Credit Suisse analyst Susan Roth Katzke raised Goldman’s price target to $262 (16.8% upside potential) from $255 and reiterated a Buy rating on the stock following the company’s better-than-expected 3Q earnings results. In a note Katzke tells investors that the company’s strategic initiatives, expense savings, medium-term financial targets and 4Q earnings due in January are likely to boost share prices.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 9 Buys and 3 Holds. The average price target stands at $266.36 and implies upside potential of about 18.8% to current levels. Shares have declined 2.4% year-to-date.
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