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JANUARY 17, 2011, 12:23 PM
Goldman Limits Facebook Investment to Foreign Clients
By ANDREW ROSS SORKIN
Daniel Acker/Bloomberg News
Goldman Sachs said in a statement on Monday that it will restrict participation in a new fund being set up to invest in Facebook to foreign clients only, citing intense public scrutiny.
Goldman added that it alone made the decision, and was not prompted to do so by a regulator or any other party.
As part of a $450 million investment by Goldman in Facebook, the investment bank sought to create a fund of about $1.5 billion for clients to join in. The offering was heavily oversubscribed by the time enrollment ended earlier this month.
The full statement provided to DealBook is below:
Goldman Sachs originally intended to conduct a private placement in the U.S. and offshore to investors interested in Facebook. The transaction generated intense media attention following the publication of an article on the evening of January 2, 2011, shortly after the launch of the transaction. In light of this intense media coverage, Goldman Sachs has decided to proceed only with the offer to investors outside the U.S.
Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law. The decision not to proceed in the U.S. was based on the sole judgment of Goldman Sachs and was not required or requested by any other party. We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take.
Goldman Limits Facebook Investment to Foreign Clients
By ANDREW ROSS SORKIN
Daniel Acker/Bloomberg News
Goldman Sachs said in a statement on Monday that it will restrict participation in a new fund being set up to invest in Facebook to foreign clients only, citing intense public scrutiny.
Goldman added that it alone made the decision, and was not prompted to do so by a regulator or any other party.
As part of a $450 million investment by Goldman in Facebook, the investment bank sought to create a fund of about $1.5 billion for clients to join in. The offering was heavily oversubscribed by the time enrollment ended earlier this month.
The full statement provided to DealBook is below:
Goldman Sachs originally intended to conduct a private placement in the U.S. and offshore to investors interested in Facebook. The transaction generated intense media attention following the publication of an article on the evening of January 2, 2011, shortly after the launch of the transaction. In light of this intense media coverage, Goldman Sachs has decided to proceed only with the offer to investors outside the U.S.
Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law. The decision not to proceed in the U.S. was based on the sole judgment of Goldman Sachs and was not required or requested by any other party. We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take.
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