Goldman and Blackstone Team Up for Novel Fund Finance Bond (1)

Goldman Sachs Group Inc. has teamed up with Blackstone Inc. to package private fund loans into bonds, a novel form of debt that banks could look to sell more of in the future.

The pair last week sold $475 million in bonds backed by loans that banks make to investment funds, according to a person with knowledge of the matter. These loans exist because private equity and other investment vehicles raise money in the form of commitments from investors to hand over cash when the fund demands it. Loans can help the funds delay asking for liquidity from their investors, ...