(Reuters) - 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