Goldman Sachs Raises Money To Invest In Start Up Hedge Funds: Report

Goldman Sachs (GS.N) has raised $600 million from clients such as pension funds, wealthy families and large institutions for a new fund that would provide start-up money to hedge-fund managers, the Wall Street Journal said.

Goldman plans investments in eight to 10 new hedge funds, to get them up and running, the Journal said, citing people familiar with the matter.

Each hedge fund can expect to receive between $75 million and $150 million from Goldman's fund, which is expected to raise about $1 billion in total, the WSJ said.

Goldman stands to gain fees on the total amount managed by the fund, and also from business the hedge funds will do with the bank's trading unit, the report said.

Goldman Sachs representatives declined to comment to the Journal. The bank could not immediately be reached by Reuters for comment outside regular U.S. business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[Aman N Duggal]

09:23 AM on 12/08/2011

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[hanspij]

01:30 AM on 12/01/2011

10 New ways to steal money ?

[chaz]

06:49 PM on 11/30/2011

The game never ends. Thanks to conservatives in this country Banks have absolutely no incentive to lend money to true capitalist.

Keep electing conservatives and keep getting screwed.

[sfizi]

05:49 PM on 11/30/2011

Get the feds on this one before the money disappear..

[sfizi]

05:45 PM on 11/30/2011

goldman sucks another enron.. just watch what happens to the money..

[ZappaRules]

04:39 PM on 11/30/2011

Remarkable!
We continue to allow these institutions to invent value out of nothing - when that is exactly what has our entire global economy at risk of collapse.

[Kenz300]

01:00 PM on 11/30/2011

How about investing in business' that actually create something like jobs and products in the USA?

[sfizi]

05:46 PM on 11/30/2011

Then they cat steal it ...

[sfizi]

05:48 PM on 11/30/2011

They can't steal it ..

[Kenz300]

12:59 PM on 11/30/2011

Hedge funds need to be regulated before they create another financial disaster.

We are not out of the last disaster yet.

[sfizi]

05:47 PM on 11/30/2011

Enron # 2 in the making

[momslam3]

11:28 AM on 11/30/2011

The sad fact is that we need investment in startups, these are the people who will create those jobs we are all clamoring for, but when I hear goldman sachs, I think, designed to fail and massaged numbers for a AAA rateing, and shorting. In a word Scammers! Once burned twice shy! Now if Warren Buffet was puting it together, I would put money in it.

[greyhound2]

10:57 AM on 11/30/2011

What value is in a hedge fund? A hedge fund finds companies in weak financial positions to acquire, lays off most of the workers to cut costs, sells out of existing inventory and then hypes the increased profit picture to some sucker for purchase for a profit. The sucker doesn't realize he will need to rehire those workers to rebuild inventory. (Movie Wall Street with MIchael Douglas) Where is the value in that?

[pmoschetta]

12:43 PM on 11/30/2011

Pretty much what Bain Capital did when Mitt Romney was running the company. Bought struggling companies, laid off their employees, downsized then shipped them overseas for profit and greed

[earlgray1787]

10:23 AM on 11/30/2011

The Market’ and Wall Street’ ... is just a big Casino’ ... who doesn't know that?
The House’ always wins ... who doesn't know that?
The Game is rigged ... who doesn't know that?