Goldman Sachs has raised $1 billion for a new hedge fund.
According to a September marketing documents obtained by the Wall Street Journal, Goldman will contribute up to 20% in a new fund that makes loans backed by real estate such as office buildings, hotels and shopping centers.
The new fund dances around the Volcker rule, which limits on the types of investment banks have with hedge funds and private equity funds. The Volcker rule, which issued its final rules earlier this month, excludes real estate loans from its restrictions.
Goldman expects to eventually double the fund’s assets to $2 billion.