It’s described in the last sentence of the one-page investment letter sent to Goldman Sachs private wealth clients:
“GS Group may at any time further reduce its exposure to its investment in Facebook (through hedging arrangements, sales or otherwise), without notice to the fund or investors in the fund.”
While it may seem like something to worry about – it isn’t. Obviously Goldman can sell its stake without telling its clients, just like it can sell a stake in any other company without telling them.
But Bloomberg has issued a bit of a warning that this is a big deal.
There is also talk that the bank’s $375 million stake (the remaining $75 million is being invested by the bank’s hedge fund) will be cut to $300 million pretty quickly by selling a chunk to other parties, says Bloomberg.
Other reasons you might avoid getting in on the deal of 2011, according to Bloomberg, if you were lucky enough to be asked in the first place are,
- Material in the documents that are supposed to make Facebook seem all shiny and alluring “is not guaranteed as to accuracy or completeness.”
- Um: Abacus. Plus, apparently the SEC is already looking into the deal.
- Goldman’s own PE unit, Goldman Sachs Capital Partners, said no.