Goldman Sachs Asset Management Faces Looming Write-Downs on Fiber Debt
GS•Goldman Sachs Asset Management backed part of €85bn debt financing for European fiber firms from 2021 to 2024 and now faces potential impairments. Banks sold €350m of Deutsche Glasfaser loans at a discount, and with 65% of firms due to refinance in two years, write-down risk rises.
1. GS Asset Management’s Fiber Financing
Between 2021 and 2024, GSAM joined other sponsors in allocating part of a €85 billion debt funding package to European fiber companies aiming to expand cable and broadband networks.
2. Banks Sell Distressed Loans
Major lenders have offloaded roughly €350 million of Deutsche Glasfaser debt to distressed funds at discounted prices, reflecting caution over cable rollout delays and cash-strapped altnets.
3. Refinancing Overhang
An industry survey finds about 65% of European fiber operators must secure new financing within two years, raising the prospect of more discounted loan sales and write-downs.
4. Impact on Goldman Sachs
Exposures to underperforming altnet loans may lead GSAM to record impairments, potentially weighing on the firm’s infrastructure returns and overall asset management fees.
