PRINCETON, N.J. (HedgeWorld.com)–Goldman Sachs Princeton LLC registered four strategy-focused funds of funds and one multi-strategy vehicle with the Securities and Exchange Commission this Monday, as closed-end investment companies.
The four strategy groups are equity long/short; tactical trading, covering managed futures and global macro; event driven, which includes merger arbitrage, high-yield/distressed securities and special situations; and relative value, focused on convertibles, equity arbitrage and fixed income.
Each of the four funds, Goldman Sachs Global Equity Long/Short Registered Fund LLC, Goldman Sachs Global Tactical Trading Registered Fund LLC, Goldman Sachs Global Event Driven Registered Fund LLC and Goldman Sachs Global Relative Value Registered Fund LLC, are expected to invest with seven to 25 managers.
The long/short fund will allocate to a wide range of styles, such as managers that focus on specific industries, certain countries or regions or employ a more diversified approach that cuts across investing styles, industries and geographic regions.
A fifth vehicle, Goldman Sachs Hedge Fund Partners Registered Fund LLC, will be invested in all four hedge fund sectors, with initially 30 to 75 underlying managers. It will have specified ranges of allocations so that each strategy group contributes roughly an equivalent amount to the expected portfolio risk of the fund of funds.
The proposed maximum capital to be raised for the four funds, specified for the purpose of calculating the registration fee, is US$100 million each, while Hedge Fund Partners fund is offering US$350 million of interests. These amounts and especially their combined value of US$750 million are large by current registered hedge fund standards.
Seb Calabro, Kent Clark, Thomas Dobler, Terrence Jones, Peter Ort, Nadja Pinnavaia and Michael Stivala are listed as the funds of funds managers. Goldman Sachs is targeting U.S. investors who meet the “qualified client” standard of US$1.5 million net worth or other requirements.
The filing does not specify a date for the initial public offering, which requires SEC approval. Interests in the funds will be offered monthly after that. These vehicles require an initial investment of at least US$50,000 and a minimum of US$25,000 for additional investment, subject to the manager’s discretion.
There is a performance fee of 5% of net profits and a management fee of 1.25%. Goldman Sachs & Co. is the distributor. Fund adviser Goldman Sachs Princeton has been running various unregistered hedge funds of funds for years. It is the successor to the Commodities Corp., acquired by Goldman Sachs in 1997 Previous HedgeWorld Story.