Goldman Sachs Middle Market Lending
Current secular changes in bank regulation are driving this opportunity. Historically, banks have been the primary source of borrowed capital to middle market companies. However, Basel III and Dodd- Frank have made it costly for banks to invest in the middle market sector. Today, banks provide less than 15% of market participation, leaving ample room for non- banks to fill the rising demand for capital. U.S. middle market companies are performing well with revenues growing by approximately 7% on average, outperforming the S&P 500. Demand from the middle market continues to grow as there are roughly 200,000 U.S. middle market companies representing $5.8T in value.
There has been has a dramatic increase in the number of non-bank participants looking to capitalize on the attractive opportunities available within the middle market space. Because of this, GFL is dedicated to partnering with experienced market participants that have demonstrated the ability to successfully source, underwrite, construct and manage middle market debt portfolios. We believe GS Middle Market Lending Corp is a leading platform that will allow our clients to capitalize on Goldman Sachs’s relationships, market insights, risk management expertise, technology and infrastructure.