Goldman Sachs PIA (Management) is a leader in corporate mezzanine investing in the Australian and New Zealand markets. In 2005, Goldman Sachs raised its first mezzanine funds, the Collateral Mezzanine Fund 05 in Australia and the Collateral Mezzanine (NZ) Fund 05 in New Zealand, with a combined A$265 million equivalent of available capital. These funds have been fully invested in approximately two years.

In December 2007, Goldman Sachs PIA (Management) raised its second fund, the Goldman Sachs Australasian Mezzanine Fund 2 (‘AMF 2’). AMF 2 is actively managed by five investment professionals coupled with experienced Investment Committee members who are reviewing and monitoring each investment.

We adopt the following characteristics in sourcing, executing and managing our investments.

Partnership approach

We emphasise trust and building long-term relationships with pre-eminent equity sponsors, managers, and placement agents. We are willing to commit resources to strengthen our working relationships with our business partners.

Creative solutions

Our broad investment mandate allows us to develop customised solutions specific to each investment situation. We have the flexibility to invest in both secured and unsecured securities with the appropriate mix of cash and non-cash returns. We consider investments with or without equity-related components, including warrants, options or common equity.

Certainty and ease of execution

Our capital commitments are firm, and we usually underwrite commitments with no ‘market out’. In general, we hold positions for our funds without syndicating them to other mezzanine providers.

Ongoing commitment to our portfolio companies

We take a cooperative role in providing additional resources and capital, as requested, to support our portfolio companies in achieving growth objectives and enhancing long-term value. We typically seek an observer or board seat at our invested companies.

Relationship with Goldman Sachs

Our business partners and portfolio companies have access to the full resources and expertise of Goldman Sachs. This includes access to sophisticated financial advice in mergers and acquisitions, research, trading, foreign exchange, and commodities. It also includes relationships with companies and individuals throughout Australasia that can be important in building successful business ventures.