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Goldman Sachs Asset Management Taps US Energy Boom By Launching Closed-End Fund
Eliane Chavagnon
27 November 2013
has rolled out the NYSE-listed Goldman Sachs MLP Income Opportunities Fund,
aimed at investors seeking to participate in “America’s
current energy expansion,” the firm said. It is the first closed-end fund
ever launched by GSAM, which currently manages more than $208 billion in US
mutual funds. The fund aims to invest primarily
in Master Limited Partnerships —a tax-advantaged structure created for use by
energy firms to support growing hydrocarbon extraction and increasing energy
demand. Companies include pipeline operators, processors, and fractionation and
storage facilities. “We have strong conviction that
compelling opportunities in MLP investing lie with midstream companies
collecting toll-like revenues, which, we believe, are less exposed to
underlying commodity prices,” said Kyri Loupis, managing director and lead
portfolio manager for the fund. The fund is managed by GSAM’s
energy and infrastructure team, which as of September 30, 2013, managed
approximately $6.4 billion in MLPs and other energy sector investments.