Goldman funds face $900m loss on Northvolt investment

Goldman Sachs Asset Management funds are set to incur a significant loss of nearly $900 million on its investment in Swedish battery maker Northvolt AB, which recently filed for bankruptcy protection.

The Financial Times reported that the US bank’s private equity funds, with an exposure of at least $896 million to Northvolt, will write off the entire investment at the end of the year.

“While we are one of many investors disappointed by this outcome, this was a minority investment through highly diversified funds. Our portfolios have concentration limits to mitigate risks,” Goldman said in an emailed statement.

Goldman was the second-largest shareholder in Northvolt, which is undergoing Chapter 11 restructuring. After failed rescue attempts, the battery maker is left with only one week’s worth of cash.

Attribution: Bloomberg

Subediting: M. S. Salama