Goldman's $18.2 billion GS Credit Fund received requests to redeem just 2% of shares in its third-quarter tender, down from 3.2% in Q2 and below its customary 5% repurchase limit since inception. The largest rival non-traded private-credit funds have seen requests of 10% to more than 16%, even as industry pressure begins to ease. GS Credit also took in roughly $400 million gross during the quarter; Class I has returned about 9.4% since inception through August 31.
The clean lesson is not that one return number proves superior underwriting. A large share of GS Credit's investors arrive through Goldman private wealth and have a greater tolerance for illiquidity. Distribution and client composition can change tender behavior enough to make apparently comparable redemption ratios misleading. Reuters