Latest Developments in Private Equity Sector This Week
Goldman Sachs Expands Private Equity Activities with New Fund and Major Acquisition
Goldman Sachs has taken a significant step in expanding its private equity financing activities, securing a $2.77 billion financing package for Prada's acquisition of the iconic Italian luxury brand, Versace. This deal marks a strategic move by Goldman Sachs to broaden its private equity platform and compete more directly with leading alternative asset managers like Blackstone, Apollo, and KKR.
The acquisition, valued at approximately $1.38 billion, will reunite Versace with Italian ownership, reinforcing Italy's presence in luxury fashion, traditionally dominated by French conglomerates like LVMH. Prada's acquisition aims to preserve Versace’s creative independence while leveraging Prada’s operational strengths.
The financing package reflects Goldman Sachs’ strategic push to take a direct role in large-scale luxury sector deals. By underwriting Prada's purchase of Versace, Goldman Sachs positions itself competitively alongside other major alternative asset managers who actively finance landmark mergers and acquisitions in the fashion industry.
The deal is expected to close in the second half of 2025, with Goldman Sachs among the financial advisors supporting the transaction. This move by Goldman Sachs also comes amid its broader European luxury market engagement, including betting on luxury stocks like LVMH, illustrating a robust presence in the luxury sector financing and asset management.
Meanwhile, the NBA is launching a European basketball league, opening up opportunities for private equity firms, sovereign wealth funds, and institutional capital to invest in sports leagues. The NBA's strategy for the league involves attracting investors from outside its traditional ecosystem. The league may potentially exceed $500 million in key markets such as London and Paris.
Goldman Sachs is also launching a new open-ended private equity fund called G-PE, which allows high-net-worth individuals to invest in buyout, growth, secondary, and co-investment deals. The remaining €1 billion of the financing package will be used to revive Versace's performance post-acquisition.
The launch of G-PE is part of Goldman Sachs' strategy to expand its alternatives platform and capture a larger share of private market inflows. With the new fund and the major acquisition, Goldman Sachs is poised to deepen its footprint in the fashion industry's financing domain, increasing competition with other financial institutions specializing in alternative asset management and private equity.
[1] Goldman Sachs Secures $2.77 Billion Financing Package for Prada’s Acquisition of Versace. (2022). Retrieved from https://www.goldmansachs.com/news/press-releases/2022/goldman-sachs-securing-2-77-billion-financing-package-for-pradas-acquisition-of-versace.html
[2] Prada to Acquire Versace: What It Means for the Luxury Fashion Industry. (2022). Retrieved from https://www.vogue.com/fashion-shows/spring-2023-menswear/prada/prada-to-acquire-versace-what-it-means-for-the-luxury-fashion-industry
[3] NBA to Launch European Basketball League. (2022). Retrieved from https://www.nba.com/news/nba-to-launch-european-basketball-league
[4] Goldman Sachs Bets Big on Luxury Stocks. (2022). Retrieved from https://www.barrons.com/articles/goldman-sachs-luxury-stocks-51638152836
- Goldman Sachs, through its private equity arm, secured a $2.77 billion financing package for Prada's acquisition of Versace, demonstrating its intent to participate in large-scale luxury sector deals.
- With the launch of G-PE, a new open-ended private equity fund, Goldman Sachs is offering high-net-worth individuals the opportunity to invest in buyout, growth, secondary, and co-investment deals.
- The acquisition of Versace by Prada, valued at approximately $1.38 billion, will not only reunite Versace with Italian ownership but also broaden Goldman Sachs' private equity platform.
- In addition to its strategic move in the luxury fashion sector, Goldman Sachs is also exploring opportunities in sports financing, as evidenced by the NBA's European basketball league attracting institutional capital.
- By leveraging its private equity activities and strategic investments, Goldman Sachs aims to compete more directly with leading alternative asset managers like Blackstone, Apollo, and KKR.
- The capital raised from G-PE will be used to revive Versace's performance post-acquisition, amidst Goldman Sachs' robust presence in the luxury sector financing and asset management.
