Goldman Sachs Has Pitched Facebook Shares To Blackstone, Fortress, And Other Client Hedge Funds

goldman sachs facebook blackstone fortress

Goldman Sachs has called hedge funds and private equity firms about the Facebook deal, in addition to individual high-net worth clients of the bank, according to the Wall Street Journal.

Officials at Blackstone and Fortress Investment Group were both contacted about potential investment.

Goldman’s own private equity fund was asked, of course, but they said no because Goldman Sachs Capital Partners’ boss, Richard Friedman, thought the stock was too expensive and not suitable for his clients.

According to the WSJ, an “unknown number of hedge funds, private-equity firms and other institutions that make trades or do other business with Goldman also have been asked if they would be interested in buying a piece of Facebook.”

We’re not surprised that Fortress was contacted; Peter Briger Jr, the company’s Chairman and a principal, was with Goldman Sachs for 15 years before he joined Fortress.

Of course if any of these institutional investors wanted in, they had to get in early – they were competing with a ton of wealthy individual clients and almost 500 Goldman partners (who aren’t subject to the $2 million minimum investment that everyone else is) for piece of the equity pie that will
likely not exceed $1.5 billion.

And the interest was so intense, the bank has allegedly already closed the door to speculators.

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