Goldman Sachs Capital Partners has returned more than $5bn (€3.9bn) to investors as a special distribution this year after a good performance from its Asian private equity business. It plans to increase its next fund from $10bn to as much as $12.5bn.

The bumper payout follows payment of a similar amount last year when Goldman Sachs sold or refinanced more than 40 of its investments. The combined distribution of more than $10bn in two years is likely to boost demand for its next fund. Goldman Sachs is targeting $10bn, after raising $8.5bn for its fifth fund last year. Sources said the bank will increase this to between $12bn and $12.5bn, depending on demand, but the fund would be capped at this level. This would avoid comparison with private equity groups, such as Blackstone, Kohlberg Kravis Roberts and Texas Pacific Group, which have raised more than $15bn each for funds. Blackstone is aiming to raise a further $5bn. Among the beneficiaries of the success of Goldman's private equity business are the bank's partners, who are allowed to co-invest alongside third-party investors. In recognition of the success of principal investing, several managing directors from the private equity division were last week among the 115 people promoted to partner, including Kenneth Pontarelli and Ankur Sahu. The returns were based on successful exits or recapitalisations, such as those of Prysmian Cables & Systems, Pirelli's cable division acquired for €490m ($620m) in July. Goldman Sachs refinanced the Prysmian debt with a €450m loan this summer to pay itself a dividend and is understood to be considering its options.