In a strategic move that will reshape the landscape of private credit investment in the Asia Pacific region, Goldman Sachs and Mubadala Investment Company have inked a landmark $1 billion agreement. The partnership will see Mubadala and Goldman Sachs Alternatives collaboratively investing in private credit opportunities across the region.
Vision and strategy
Mubadala and Goldman Sachs Alternatives will capitalize on the growing private credit opportunities in the Asia Pacific region. The partnership aims to deploy $1 billion of long-term capital to provide tailored private credit solutions to high-quality companies and sponsors across the Asia Pacific region.
Managed by Private Credit at Goldman Sachs Alternatives, the partnership with Mubadala will leverage the expertise of a dedicated on-the-ground team spread across multiple Asia Pacific markets. The global Private Credit team consists of 165 credit investment professionals. They oversee more than $110 billion in assets under management (AUM). The team draws on the network, expertise, and capabilities of Goldman Sachs to source and underwrite global lending opportunities.
Strategic focus
The partnership’s investment mandate encompasses a broad spectrum of private credit opportunities, with a particular focus on India. Fabrizio Bocciardi, head of credit investments at Mubadala, noted, “We look forward to working alongside Goldman Sachs to unlock new opportunities throughout the Asia Pacific region, a leading driver of global economic growth. India, in particular, stands out as a key market with significant opportunities in private credit, and where Goldman Sachs has strong exposure and capabilities.”
For his part, Greg Olafson, global head of private credit at Goldman Sachs Alternatives, said, “The opportunity in private credit in Asia Pacific is expansive.” Olafson highlights the region’s strong economic growth and favorable conditions for investment. He added that private lenders can support the growth of leading companies by providing flexible and long-term capital.
Expanding presence
Goldman Sachs has long recognized the potential of the Asia Pacific markets, having initiated investments in the region since 1998. Therefore, the decision to embark on this partnership with Mubadala comes amid Goldman Sachs’s expansion efforts in the Middle East and North Africa region. Hence, it opened a new office in Abu Dhabi Global Market (ADGM) in 2023. Therefore, this move underscores Goldman Sachs’ commitment to deepening its relationships with clients and expanding its global footprint.
New era in private credit
The partnership focuses on fostering economic growth, driving innovation, and supporting businesses in the Asia Pacific region. Therefore, the collaborative efforts of Goldman Sachs and Mubadala signal a new chapter in the evolution of private credit investment. “We believe we are at the early stages of a defining era for private credit in Asia Pacific. Through this partnership with Mubadala, we look forward to expanding our long-established investment focus on the region,” Olafson states.
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