Goldman Sachs Asset Management has taken a passive, minority, non-voting stake in private equity group Arlington Capital Partners.
The deal, which was announced on Monday, will see Goldman Sachs AM (GSAM) assume a position through its Petershill programme, which was established specifically to take strategic positions in alternative and private market groups.
Arlington Capital Partners, which is headquartered in Washington, said the deal would build on an existing strategic partnership between the two firms. In addition, it would not impact the day-to-day running of the company but allow it to accelerate its long-term growth plans.
This will be achieved through additional capital from GSAM going into expanding its base of global limited partners, utilising its unique sector expertise and providing additional differentiated investment vehicles.
Arlington Capital Partners manages around $4bn invested across five funds, with the Arlington Capital Partners V being the current investment vehicle. This vintage has $1.7bn in assets.
GSAM manages more than $250bn globally.