Goldman Sachs MLP and Energy Renaissance Fund raises $1.4 billion in IPO

Goldman Sachs Asset Management, L.P. (GSAM) announced in late September the public listing of the Goldman Sachs MLP and Energy Renaissance Fund, now trading on the New York Stock Exchange under the ticker symbol “GER.”

James McNamara, President of the Goldman Sachs Funds advised by GSAM, said:

“Further expanding our energy-focused product line continues to be an important strategic initiative for GSAM, and we are pleased to have completed our second successful MLP closed-end fund launch within the last 12 months.”

The fund will invest primarily in Master Limited Partnerships (MLPs) and other energy investments. The fund currently expects to concentrate its investments in the energy sector, with an emphasis on midstream MLP investments. The fund will invest in investments across the energy value chain, including upstream, midstream and downstream investments. The fund seeks a high level of total return with an emphasis on current distributions to shareholders. There can be no assurance that the Fund will achieve its investment objective or that the Fund's investment program will be successful.

Kyri Loupis, Managing Director of GSAM and lead portfolio manager for the fund, said:

“We believe the US energy renaissance story is only in its early stages and we see multiple years of growth ahead. Our midstream MLP focus, combined with an opportunistic approach for selecting energy users and producers, can help make this fund more of a complete product for today’s environment.”

The fund is managed by GSAM’s Energy & Infrastructure Team, which is among the industry’s largest MLP investment groups. As of August 31, 2014 the team managed approximately $14.1 billion in MLPs and other energy investments.

The fund raised $1.4 billion in its common share offering, excluding any exercise of the underwriters’ option to purchase additional shares. If the underwriters exercise their option to purchase additional shares in full, the fund will raise $1.61 billion.

BofA Merrill Lynch, Morgan Stanley, UBS Investment Bank, Wells Fargo Securities and Citigroup were lead underwriters in connection with the offering.