Just days after announcing a private investment placement that values Facebook at $50 billion, Goldman Sachs’ controversial fund is already oversubscribed, The Wall Street Journal reported late Wednesday. The platinum-plated Wall Street titan will not seek any further investments after receiving orders worth several billion dollars, the paper said.
That strong response from Goldman’s wealthy clients appears to have far exceeded the $1.5 billion the bank had planned to raise, and leaves absolutely no doubt that the appetite for a piece of the world’s largest social network — still a private company that outsiders can only speculate brings in a reported $2 billion a year — is voracious.
“It’s a blowout,” The Journal quoted one Goldman employee as telling an investor.
Goldman’s Facebook fund is aimed at the most elite investors in the world, Goldman’s own Private Wealth Management clients, who must have a net worth of $10 million to even get a call-back. The minimum investment in the Facebook fund is $2 million, which means that Goldman’s money managers probably won’t allow any client to invest who is worth less than $30 million, according to The Journal.
