• Regulatory changes, tax incentives, and advancements in clean technology are pushing the need for debt financing.
• However, private debt capital has been comparatively scarce.

Goldman Sachs Alternatives has launched a new private credit strategy that finances businesses engaged in environmental and climate projects.

They have already received $1 billion from investors as an initial commitment.

Their strategy provides private credits or flexible loans to companies that need funding for sustainable solutions. Ordinarily, private equity or investing in a company's ownership is more common in this space, and private debt or lending money has been very rare or less available.

READ MORE: Morgan Stanley Invests in Torch to Expand Integrated Renewable Power Solutions

Goldman Sachs is poised to resolve this problem and earn returns for its investors. The company has a dedicated team with decades of experience in private credit and climate-related investments and invested over $190 billion in private credit since 1996. They aim to become a preferred financing partner for companies and investors in the climate transition sector.

James Reynolds, Global Co-Head of Private Credit at Goldman Sachs Alternatives, said: “We see significant opportunities to address the supply-demand imbalance in private credit solutions related to climate transition. Substantial capital has been raised for private equity investment in the space, and debt solutions are needed to provide further scale.

"We look forward to partnering with leading companies and financial sponsors to deliver performance for our clients and are deeply appreciative of the support we have received so far from investors in this new strategy.”

ALSO READ: L&G Invests $235m More in Sustainable Growth in Emerging Markets

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Source: Goldman Sachs