Funds managed by Goldman Sachs Asset Administration are set to write down off virtually $900 million on investments in Swedish battery maker Northvolt AB, which filed for chapter safety this week, the Monetary Instances reported, citing letters to traders it has seen.
The US financial institution’s non-public fairness funds, which have not less than $896 million in publicity to Northvolt, will write that down in its entirety on the finish of the yr, the newspaper reported on Saturday.
“Whereas we’re one in every of many traders upset by this final result, this was a minority funding by means of extremely diversified funds. Our portfolios have focus limits to mitigate dangers,” Goldman mentioned in an emailed assertion.
Goldman’s holdings made it the second-largest shareholder in Northvolt, which is looking for to restructure beneath Chapter 11 proceedings within the US. The transfer capped months of talks with homeowners, prospects and collectors. Goldman was spearheading an investor group attempting to rescue the corporate. The bid failed, leaving the battery maker with only one week’s money in its accounts.
