Goldman Sachs Asset Management Announces Share Repurchase Program For Goldman Sachs MLP and Energy Renaissance Fund

Rhea-AI Summary

Goldman Sachs Asset Management has announced a share repurchase program for the Goldman Sachs MLP and Energy Renaissance Fund (GER), effective from May 15, 2022, to April 30, 2023. The Fund plans to buy back up to $10 million of its shares if they trade at more than a 10% discount to their net asset value (NAV). This initiative aims to enhance shareholder value and improve NAV and Net Investment Income per share. The repurchase program follows SEC rules and will be disclosed in shareholder reports.

Positive

• Share repurchase program of up to $10 million enhances shareholder value.
• Buyback expected to be accretive to NAV and per share cash flow.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Goldman Sachs Asset Management, investment adviser for the Goldman Sachs MLP and Energy Renaissance Fund (“the Fund”) (NYSE: GER) announced today that the Fund’s Board of Trustees has approved a share repurchase program for the Fund effective from May 15, 2022, through April 30, 2023. Under the share repurchase program, GER intends to purchase in the open market, up to $10 million of its outstanding common shares, if trading at a discount to net asset value (“NAV”) per share in excess of 10%. The share repurchase program seeks to enhance shareholder value by purchasing the Fund’s shares trading at a discount to NAV per share, which could result in NAV and Net Investment Income per share accretion.

“We are continuously evaluating ways to enhance shareholder value and believe that at this time repurchasing shares in the open market is once again the optimal method to deliver value to shareholders. We expect the repurchase will be accretive to the Fund’s NAV and per share cash flow,” said Portfolio Manager Kyri Loupis.

The Fund’s repurchase activity will be disclosed in its shareholder reports for the relevant fiscal periods. The share purchase program will follow the requirements of Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and there is no assurance that the Fund will repurchase shares in any amount.

Goldman Sachs MLP and Energy Renaissance Fund

The Fund is a non-diversified, closed-end management investment company managed by GSAM’s Energy Infrastructure & Renewables Team, which is among the industry’s largest master limited partnership (“MLP”) investment groups. The Fund began trading on the NYSE on September 26, 2014.

The Fund seeks a high level of total return with an emphasis on current distributions to shareholders. The Fund invests primarily in MLPs and other energy investments. The Fund currently expects to concentrate its investments in the energy sector, with an emphasis on midstream MLP investments. The Fund invests across the energy value chain, including upstream, midstream and downstream investments.

About Goldman Sachs Asset Management, L.P.

Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market – overseeing more than $2 trillion in assets under supervision worldwide as of December 31, 2021.¹ Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.

Disclosures

Shares of closed-end investment companies frequently trade at a discount from their net asset value (“NAV”), which may increase investors’ risk of loss. At the time of sale, an investor’s shares may have a market price that is above or below NAV, and may be worth more or less than the original investment. There is no assurance that the Fund will meet its investment objective. Past performance does not guarantee future results. Investments in securities of MLPs involve risks that differ from investments in common stock, including among others risks related to limited control and limited rights to vote on matters affecting MLPs, potential conflicts of interest risk, cash flow risks, dilution risks and trading risks.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any security. The Fund has completed its initial public offering. Investors should consider their investment goals, time horizons and risk tolerance before investing in the Fund. An investment in the Fund is not appropriate for all investors, and the Fund is not intended to be a complete investment program. Investors should carefully review and consider the Fund’s investment objective, risks, charges and expenses before investing.

For additional information, please visit the Fund’s website at www.GSAMFUNDS.com/cef.

©2022 Goldman Sachs. All rights reserved.
Compliance Code: 276446.OTU
Date of First Use: April 19, 2022

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1 Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion. AUS figure as of December 31, 2021.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220419006133/en/

Media Contact:

Avery Reed, Tel: 212-357-0125

Investor Contact:

Charles Sturges, Tel: 212-902-7996

Source: Goldman Sachs Asset Management

FAQ

What is the share repurchase program for GER?

Goldman Sachs Asset Management announced a share repurchase program for GER, allowing up to $10 million of shares to be bought back if they trade at a discount of more than 10% to NAV.

When does the GER buyback program start and end?

The buyback program for GER is effective from May 15, 2022, to April 30, 2023.

How does the share repurchase affect GER's stock value?

The repurchase program aims to enhance shareholder value and may improve GER's NAV and Net Investment Income per share.

Which regulations govern the GER buyback program?

The GER buyback program follows SEC rules, specifically Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934.

What risks are associated with investing in GER?

Investing in GER involves risks including potential losses from trading at a discount to NAV and cash flow risks associated with MLP investments.