Goldman Sachs and Mubadala ink $1bn Asian private credit deal
Goldman Sachs has signed a $1bn (£789m) partnership with Abu Dhabi’s sovereign wealth fund Mubadala Investment Company to invest in private credit across the Asia Pacific region.
The partnership will be managed by the investment banking giant’s private credit team in its alternatives division.
It will look to deploy $1bn in high quality companies across the private credit spectrum across the region, with a particular focus on India.
The news follows Goldman Sachs’ expansion in the Middle East last year with the launch of its office in Abu Dhabi Global Market, the financial centre of the UAE capital.
Goldman Sachs’ private credit team manages $110bn in assets. Earlier this month, it launched a private credit fund aimed at the wealth market.
“The opportunity in private credit in Asia Pacific is expansive,” Greg Olafson, global head of private credit at Goldman Sachs Alternatives, said. “With strong economic growth in the region and favorable conditions for private lenders to support the growth of leading companies by providing flexible, long-term capital, we believe we are at the early stages of a defining era for private credit in Asia Pacific.”
Mubadala Investment Company manages a global portfolio of $276bn that invests across six continents and a range of sectors and asset classes, with a focus on diversification of the UAE economy.
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“The diverse and rapidly growing economies, as well as the increasing private equity deal volumes, are significantly driving demand in Asia-Pacific for customised credit solutions from non-traditional lenders,” said Omar Eraiqat, deputy chief executive of diversified investments at Mubadala.
“This partnership with Goldman Sachs compliments our aspirations to grow our private credit exposure in Apac, a region that is central to Mubadala’s strategic growth initiatives.”
Mubadala has been tapping into the fast-growing private credit market. Last December, it announced that it had partnered with Ares Management and Aldar Properties on a $1bn private credit fund that will invest in property across the UK and mainland Europe.
