Specialty Lending

The Goldman Sachs Specialty Lending Group is the firm’s investment platform dedicated to providing financing solutions to middle market companies based in the US, Canada, UK and Europe.

Approach

Our focus on underwriting the underlying intrinsic value of a business enables us to creatively invest in a broad spectrum of credit risk. We are able to fully underwrite single lien structures ranging in size from $20 million to $150 million. These fully underwritten, one-stop financing solutions incorporate first lien, second lien and mezzanine risk in a simple capital structure that eliminates inter-creditor issues and syndication risk, enabling fast and reliable closings. We also have the flexibility to invest in individual tranches of debt.

A number of key philosophies form the foundation of our unique approach to specialty lending.

Our people determine our success. Our highly skilled team of investing professionals allows us to develop unique perspectives and craft creative solutions that demonstrate substantive differences for our borrowers.

We invest capital with a long-term focus. This investing culture allows us to focus our time and effort on understanding our borrowers’ long-term fundamentals.

We are committed to the middle market. Our focus is on middle market companies, delivering flexible, reliable capital while leveraging the firm-wide resources of Goldman Sachs.

We value relationships and building trust. We create strong, lasting relationships with owners and managers and build the trust of our borrowers by honoring commitments, responding to needs and communicating directly.

Advantages

We provide middle-market borrowers and owners with simple, streamlined financing solutions that deliver certainty. Our offering presents prospective and existing clients with clear advantages.

Responsiveness and Creativity. We deliver clear, quick and thoughtful responses; we resolve issues quickly and make intelligent decisions. Our diverse and experienced team of professionals develops creative solutions based on our internal assessment of risk and returns and avoids relying on traditional credit parameters or market conventions.

Fully Underwritten Transactions. We deliver certainty. We seek to fully underwrite our transactions to eliminate syndication risk for our borrowers. We do not rely on broad syndications and can make commitments without market flex language.

Leadership Role in Credits. We intend to hold significant, meaningfully influential positions within our credits, allowing us to play a leadership role to resolve issues when they arise.

One Stop, Single Lien Structures. We have the ability to structure single lien financings that encompass a blended risk profile and cost of capital to eliminate inter-creditor issues and facilitate fast and reliable closings.

Risk-Adjusted Return Investing. We assess and price risk without relying on market conventions to invest across the entire capital structure, including standalone first lien, second lien and junior capital investments. We can consider structures involving incremental leverage or more flexible terms, compared with the prevailing market.

Capital Access to Capital-Constrained Companies. We excel at providing financing solutions to companies with limited access to capital, including non-rated, smaller and middle-market companies, businesses with complex business models and entities with a high level of intrinsic value relative to hard assets or cash flow.

Investment Profile

We pursue investments with the following characteristics:

Transaction Type

  • Leveraged and management buy-outs

  • Recapitalizations

  • Expansion and growth financings

  • Turnarounds, restructurings and exit financings

Investment Size

  • $20mm to $150mm

Investment Structure

  • One stop, single- or multi-tranche structures:
    - senior secured first lien debt
    - senior secured second lien debt
    - mezzanine debt
    - non-control structured investments (convertible debt and debt with warrants)  

Target Industries

  • Business services

  • Consumer products

  • Healthcare

  • Franchising

  • Lender finance

  • Media

  • Oil and Gas

  • Retail

  • Software

  • Technology

  • Telecom/Wireless

Contacts

New York Headquarters 
200 West Street
New York, New York 10282
+1 212 902 1000

London
Peterborough Court
133 Fleet Street
London, EC4A 2BB
+44 20 7774 1000

Atlanta 
11605 Haynes Bridge Road, Suite 695
Alpharetta, Georgia 30004
+1 770 663 6160

Dallas 
2001 Ross Avenue
Dallas, Texas 75204
+1 972 368 5000

Irvine (Los Angeles) 
8105 Irvine Center Drive, Suite 560
Irvine, California 92618
+1 949 790 3737

More in Middle Market Financing and Investing