Goldman Sachs’ alternative investment arm has acquired New York-headquartered working capital finance and trade credit insurance provider FGI Worldwide.
FGI provides asset-based loans, receivables finance and invoice discounting, and has extended support in more than 60 countries over its 25-year history. Its offering has included providing single global credit facilities to companies operating in multiple markets.
The two companies announced on May 12 that FGI had been acquired by the private equity arm of Goldman Sachs Alternatives, with financial terms not disclosed.
Alongside the transaction, FGI’s co-founder and president Sami Altaher has been appointed chief executive, succeeding David DiPiero, who had headed the company since 1998.
Michael Coleman, managing director within Goldman Sachs’ private equity business, said the bank was “impressed by the capabilities and operational sophistication FGI has built”.
Anthony Arnold, a private equity partner at Goldman Sachs, hailed FGI’s “market-leading underwriting expertise” and its technology-driven operating platform.
“As the company’s first institutional investors, we look forward to bringing the full scope of Goldman Sachs’ resources to help FGI capitalise on the significant opportunities ahead,” he said.
Altaher added: “Looking ahead, we are focused on thoughtfully scaling the business by investing in our platform and expanding our product capabilities, while remaining committed to serving small and medium-sized enterprises and the broader commercial finance industry.”
Analysis by Zacks Equity Research published on May 13 said the acquisition reflects Goldman Sachs’ ambition to capture a larger share of the private credit market.
The Chicago-based firm said the deal also provides the bank with a portfolio of clients that often need flexible working capital solutions, particularly during periods of supply chain disruption.
