Will Goldman Let Clients Buy Private Stakes In Facebook?
With the Securities and Exchanges Commission already investigating trades of Facebook stock on private marketplaces, how will the regulator react to a proposed $1.5 billion "special purpose vehicle" for Goldman Sachs clients to participate in Facebook investments?
The Goldman Sachs investment of $450 million in Facebook also includes a provision to create a $1.5 billion fund that would allow participation by clientele of the prestigious Wall Street firm.
It’s one thing to allow accredited investors to buy into such a fund, and something entirely different to open it up to high-net-worth individuals. The Securities and Exchanges Commission is already investigating trades in Facebook shares on private marketplaces. So would a $1.5 billion “special purpose vehicle” created by Goldman Sachs raise a red flag with the SEC?
It seems more likely that the SEC would pressure the social network to do an initial public offering instead, and Goldman would make a logical choice for lead underwriter of the deal.
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