Goldman Sachs and Riverstone Holdings Partnership
In 1869, Goldman Sachs was founded, and it is headquarters are in New York City. Goldman Sachs (Goldman Sachs Group, Inc.) is a multinational company that monopolizes global investment banking. Sachs does everything financial, from mergers and acquisitions to acquiring its bank, GS Bank USA.
Goldman Sachs has had many financial ups and downs, just like the average guy, For instance, on December 4, 1928, the firm was hit hard by the onset of the Great Depression, with the loss of Goldman Sach’s Trading Corp., and faced inside trader accusations.
Goldman Sachs suffered a loss of a least $10 billion dollars due to the 2007-2008 financial crisis, for its involvement in subprime mortgage securitization., The U.S. Treasury loaned Goldman Sachs $10 billion dollars as bailout funds when Obama came to office. The loan was repaid with interest.
To have an idea of how much Goldman Sachs is worth, just last year, Goldman Sachs agreed to give away more than $5 billion dollars in a settlement related to its conduct in the collapse of the residential mortgage market which triggered thousands of foreclosures.
In the mid-1980s Riverstone Holdings was founded by Pierre F. Lapeyre, Jr. and David M. Leuschen. Riverstone Holdings is a private equity firm based in New York City. It has a multinational footprint. Its credit investments are in the Energy and Electrical power industries. They were instrumental in the formation of the Goldman Sachs Global Energy & Power Group and focused on petroleum, gas, renewables, infrastructure and technology.
More recently, the media reports that Goldman Sachs agreed to pay only $500 million dollars, walking-around money, for a 12 percent stake in an energy investment firm, Riverstone Holdings, which value is more than $4 billion dollars. This transaction brings together old friends, the Riverstone’s founders and the Goldman energy team
Before Goldman’s offer, there were a series of transactions and relationships which have either directly or tangentially involved Riverstone Holdings. Riverstone is deeply involved with energy and with the family of energy companies including Silver Run Acquisition Corp., Rock Oil Holdings LLC, SM Energy Co., SM Energy Co., Marathon Petroleum Corp and Canada’s Husky Energy Inc.
Therefore, Goldman’s 12% share of Riverstone is a step in the direction of its strategy to increase its leverage in all forms of energy transactions and acquisitions.