Former Goldman Partners Join Private-Credit Rush in New Venture

Former Goldman Sachs Group Inc. partners Tom Connolly and Mike Koester are betting on one of the hottest corners on Wall Street for their next act.

The New York-based duo have co-founded a new firm, 5C Investment Partners, that aims to capture a slice of the burgeoning private credit market, where alternative asset managers are increasingly displacing banks by providing multi-billion financings to companies.

5C co-managing partners Tom Connolly and Mike Koester.

Source: 5C Investment Partners

“Direct lending is playing a very important role during a market dislocation that is persistent,” Koester said in an interview Thursday, referring to regulation that has curbed bank lending since 2008. “There are credit-worthy ...