Also as part of the deal, the bank is going to help raise another $1.5 billion for Mark Zuckerberg‘s tech juggernaut.
And how is the bank going to have their clients invest?
Insiders told Dealbook that Goldman will create a “special purpose vehicle” so that its high-net-worth clients can buy in.
The best thing about the vehicle: It will bypass SEC requirements that firms with over 499 investors have to disclose their financial results to the public, since the vehicle will be managed by Goldman, which, despite pooling the funds of thousands of investors, is deemed to be a single investor.
So John Paulson, for example, could invest $50 million in Facebook and lose it all, but no one would know.
Goldman is putting up $450 million; DST is investing $50 million (they’ve already invested hundreds of millions in Facebook). And the bank reportedly has the right to sell part of its stake to DST if it wishes later.