Reply #34: Goldman May Raise $18 Billion for Global Buyout Fund (Update2) [View All]

[54anickel]

http://www.bloomberg.com/apps/news?pid=20601087&sid=amuBbJmDv2qc&refer=worldwide

Feb. 9 (Bloomberg) -- Goldman Sachs Group Inc., the world's biggest securities firm by market value, may raise more than $18 billion for leveraged buyouts, almost double what it initially sought, said two people with knowledge of the plan.

Goldman will use its capital and money from investors and employees to pursue takeovers in the U.S., Europe and Asia, said the people, who declined to be identified until the New York- based firm closes the fund next month.

``People continue to invest aggressively in private equity,'' said Hiromichi Mizuno, a partner at Coller Capital Ltd., a London-based private equity firm. ``This flood of cash has intensified competition and pushed up acquisition prices.''

The Goldman fund will be almost as big as pools being amassed by New York-based Blackstone Group LP and Kohlberg Kravis Roberts & Co. in a record year for fundraising. That may put Goldman, the perennial leader in advising on mergers and acquisitions, in conflict with LBO firms and investment banking clients when they bid for companies.

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Potential Conflicts

Goldman is teaming up with buyout firms to avoid competing against them. In November, the firm joined KKR to buy the Kion forklift division of Germany's Linde Group for 4 billion euros ($5.2 billion). Goldman also is partnering with KKR to purchase French Yellow Pages publisher PagesJaunes Groupe SA.

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