Former Goldman Sachs executives, Tom Connolly and Michael Koester, have officially announced the launch of their new firm, 5c Investment Partners, backed by $1.6 billion in capital earmarked for direct lending activities. The firm has commenced investment operations, supported by anchor partners Liberty Mutual Investments and the Dell Family Office. DFO Management, representing the Dell Family Office, is reported to be the first external capital provider to 5C Investment Partners, also taking a passive stake in the newly established venture.
5C Investment Partners will strategically focus on providing tailored financing solutions to sponsor-backed companies within the upper middle-market segment. These target companies will exhibit robust business fundamentals and demonstrable competitive advantages. The total capital raised encompasses equity commitments, targeted leverage, and a co-investment program, positioning the firm for significant market impact.
Drawing on their extensive 25-year experience in private markets at Goldman Sachs, Connolly and Koester emphasize a core investment philosophy centered on consistency, meticulous evaluation, and a discerning approach to investment selection. These principles, they believe, are crucial for generating attractive, risk-adjusted returns across diverse economic, financial, and credit cycles.
In a letter to potential investors this past April, the founders and co-managing partners of 5C Investment Partners articulated their perspective on the current market: “We believe today’s opportunity for private credit is even more compelling as companies need creative and responsive financing alternatives not easily obtained from traditional sources.” This highlights the firm’s strategic focus on filling a critical gap in the financing landscape.
This launch marks a significant career milestone for both Connolly and Koester. Connolly previously held the position of Partner and Global Head of Private Credit within Goldman Sachs’ Merchant Banking Division, overseeing a substantial portfolio of over $90 billion in investable capital across various credit strategies. Koester, who co-founded 5C Investment Partners following his retirement from Goldman Sachs last year, served as Co-President of the firm’s alternative investments unit.
Established in September 2023, 5C Investment Partners has rapidly built a team of over 20 professionals. The firm is built upon four fundamental principles that guide its operations: a deep-seated commitment to clients, a rigorous focus on credit fundamentals, a dedication to being a trusted partner, and a strong emphasis on attracting and retaining top-tier talent within the industry.
