Financial Times FT.com

Goldman sets up $10bn fund to exploit gap

By Henny Sender in New York

Published: July 24 2008 03:00 | Last updated: July 24 2008 03:00

Goldman Sachs has raised a $10bn fund to invest in loans backing leveraged buy-outs, taking advantage of a gap in the financing markets created by the credit crisis.

The fund will buy senior loans, so-called because they are paid off before other debts. It comes in addition to an existing $20bn Goldman fund that invests in "mezzanine" debts, which are paid after the senior debt.

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