Goldman Sachs Asset Management, investment adviser for the Goldman Sachs MLP and Energy Renaissance Fund, announced yesterday that the Fund’s Board of Trustees, at the recommendation of GSAM, has approved a plan of liquidation and dissolution (the “Plan”) for the Fund. Under the Plan, which is effective today, the Fund will begin the process of liquidating portfolio assets and unwinding its affairs in an orderly fashion over time. The Plan is not subject to shareholder approval.
Kyri Loupis, co-chief investment officer of the Liquid Real Assets business within GSAM and portfolio manager for GER stated: “After careful consideration, we concluded that liquidating the Fund was the best path forward in order to realize value to shareholders. In the last three years, we have taken multiple steps to reduce the Fund’s discount to net asset value including increasing the dividend by 55% and conducting a buyback program which resulted in the retirement of 2.58 million shares or 15.0% of total shares outstanding. We remain very constructive on the fundamentals of the energy infrastructure sector and believe that it is poised to deliver attractive growth in the next few years.”
Steve Barry, head of the Fundamental Equity business within GSAM also stated: “GSAM remains one of the largest asset managers in the energy infrastructure sector. We believe in the longer-term prospects of the sector and are excited to continue delivering sector exposure to our clients via separate accounts and pooled investment vehicles.”
Additional information about the Fund’s liquidation, including the anticipated timing and amount of the Fund’s liquidating distribution to shareholders, will be released in advance of the completion of the Fund’s liquidation.
A liquidation may have important tax consequences for the Fund and its investors. Investors should be aware that a determination of the tax consequences to them should take into account their specific circumstances and that the tax law is subject to change in the future or retroactively and investors are strongly urged to consult with their own tax advisor regarding any potential strategy, investment or transaction.
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