Goldman Sachs MLP and Energy Renaissance Fund Raises $1.4 Billion in Initial Public Offering With Aim to Deliver Exposure to America’s Rapidly Expanding Energy Sector

Largest MLP Closed-End Fund Initial Public Offering To Date1

Largest Closed-End Fund Initial Public Offering This Year1

NEW YORK--()--For investors seeking to participate in the US Energy Renaissance, Goldman Sachs Asset Management, L.P. (“GSAM”) is pleased to announce the public listing of the Goldman Sachs MLP and Energy Renaissance Fund (the “Fund”), now trading on the New York Stock Exchange under the ticker symbol “GER.”

“Our midstream MLP focus, combined with an opportunistic approach for selecting energy users and producers, can help make this fund more of a complete product for today’s environment.”

“Further expanding our energy-focused product line continues to be an important strategic initiative for GSAM, and we are pleased to have completed our second successful MLP closed-end fund launch within the last 12 months,” said James McNamara, President of the Goldman Sachs Funds advised by GSAM.

The Fund will invest primarily in Master Limited Partnerships (“MLPs”) and other energy investments. The Fund currently expects to concentrate its investments in the energy sector, with an emphasis on midstream MLP investments. The Fund will invest in investments across the energy value chain, including upstream, midstream and downstream investments. The Fund seeks a high level of total return with an emphasis on current distributions to shareholders. There can be no assurance that the Fund will achieve its investment objective or that the Fund's investment program will be successful.

“We believe the US energy renaissance story is only in its early stages and we see multiple years of growth ahead,” said Kyri Loupis, Managing Director of GSAM and lead portfolio manager for the Fund. “Our midstream MLP focus, combined with an opportunistic approach for selecting energy users and producers, can help make this fund more of a complete product for today’s environment.”

The Fund is managed by GSAM’s Energy & Infrastructure Team, which is among the industry’s largest MLP investment groups. As of August 31, 2014 the team managed approximately $14.1 billion in MLPs and other energy investments.2

1. Source: Closed-End Fund Association (cefa.com)
2. Source: eVestment Alliance Search Engine (eASE) Analytics, August 31, 2014.

The Fund raised $1.4 billion in its common share offering, excluding any exercise of the underwriters’ option to purchase additional shares. If the underwriters exercise their option to purchase additional shares in full, the Fund will raise $1.61 billion. Underwriters may exercise their option to purchase additional shares up to 45 days after the initial public offering.

BofA Merrill Lynch, Morgan Stanley, UBS Investment Bank, Wells Fargo Securities and Citigroup were lead underwriters in connection with the offering.

About Goldman Sachs Asset Management (GSAM)

GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which supervises $1.14 trillion as of June 30, 2014.3 GSAM has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

3. Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion.

Disclosures

Shares of closed-end investment companies frequently trade at a discount from their net asset value (“NAV”), which may increase investors’ risk of loss. At the time of sale, an investor’s shares may have a market price that is above or below NAV, and may be worth more or less than the original investment. There is no assurance that the Fund will meet its investment objective. Past performance does not guarantee future results. Investments in securities of MLPs involve risks that differ from investments in common stock, including among others risks related to limited control and limited rights to vote on matters affecting MLPs, potential conflicts of interest risk, cash flow risks, dilution risks and trading risks.

A registration statement relating to the Fund’s common stock has been filed with and declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any security. The Fund has completed its initial public offering.

Investors should consider their investment goals, time horizons and risk tolerance before investing in the Fund. An investment in the Fund is not appropriate for all investors, and the Fund is not intended to be a complete investment program. Investors should carefully review and consider the Fund’s investment objective, risks, charges and expenses before investing.

Fund Risk Considerations

The Goldman Sachs MLP and Energy Renaissance Fund invests primarily in master limited partnership (“MLP”) and other energy investments. The Fund’s equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to numerous factors, including the prospects of individual companies, particular sectors and/or general economic conditions. Investments in MLPs are subject to certain additional risks, including risks related to limited control and limited rights to vote, potential conflicts of interest, cash flow risks, dilution risks, limited liquidity, risks related to the general partner’s right to force sales at undesirable times or prices, interest rate sensitivity and for MLPs with smaller capitalizations, lower trading volume and abrupt or erratic price movements. MLPs are also subject to risks relating to their complex tax structure, including the risk that an MLP could lose its tax status as a partnership, resulting in a reduction in the value of the Fund’s investment in the MLP and lower income to the Fund. MLPs are also subject to the risk that to the extent that a distribution received from an MLP is treated as a return of capital, the Fund’s adjusted tax basis in the MLP interests may be reduced, which may increase the Fund’s tax liability upon the sale of the MLP interests or upon subsequent distributions in respect of such interests. The Fund’s strategy results in its being taxed as a regular corporation, or “C” corporation, which involves complicated accounting, tax and valuation issues. Many MLPs in which the Fund invests operate facilities within the energy sector and are also subject to risks affecting that sector. Because the Fund concentrates its investments in the energy sector, the Fund is subject to greater risk of loss as a result of adverse economic, business or other developments affecting industries within that sector than if its investments were more diversified across different industries. The Fund may invest in private investment in public equities (“PIPEs”) which may be deemed illiquid. The securities of mid- and small-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund may invest in MLPs with smaller capitalizations which may have limited financial resources and less liquidity. The Fund may invest in private companies, or companies prior to their initial public offering, which are not subject to Securities and Exchange Commission (“SEC”) reporting and are more vulnerable to market conditions. The Fund is non-diversified and may invest a larger percentage of its assets in fewer issuers than diversified funds. Accordingly, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio and to greater losses resulting from these developments.

The Fund is newly organized and has no operating history. Shares of closed-end investment companies frequently trade at a discount from their net asset value (“NAV”) and the Fund cannot predict whether its shares will trade at, below or above NAV or the initial public offering price. The Fund is subject to leverage risk, which involves risks and special considerations including the likelihood of greater volatility of NAV, market price and dividend rate of the shares than a comparable portfolio without leverage; the risk that fluctuations in interest rates on borrowings and short-term debt or in the interest or dividend rates on any leverage that the Fund must pay will reduce returns; the effect of leverage in a declining market, which is likely to cause a greater decline in the NAV of the shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the shares. The Fund’s investments in derivative instruments can be illiquid, may disproportionately increase losses, and may have a potentially large impact on Fund performance. Investments in derivative instruments may be harder to value, subject to greater volatility and more likely subject to changes in tax treatment than other investments. An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle.

Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any security. Views and opinions are current and may be subject to change, they should not be construed as investment advice.

Compliance Code: 139679.MF.MED.OTU
Date of First Use: September 26, 2014

Contacts

For Goldman Sachs Asset Management
Media:
Andrea Raphael, 212-902-5400
or
Investors:
Keith McRedmond, 212-357-7359

Release Summary

GSAM Launches Largest MLP Closed-End Fund Initial Public Offering To Date

Goldman Sachs Asset Management, L.P.