Goldman Sachs' merchant banking division just wrapped up the investment stage for its $20.7bn 2007 fund, but don’t expect it to return to market seeking a similar sized pool of capital.

Richard Friedman, the global head of Goldman's merchant banking unit, which handles the firm's private equity investments, said he'd likely seek between $7bn and $10bn for the firm's next vehicle, falling in step with other mega firms that have looked to raise smaller funds since the buyout industry's boom days.