Mubadala's private credit strategies have been dominant in North America and Europe, With Goldman Sachs, the Abu Dhabi investment company plans to scale up big-time in Asia-Pacific too. Image Credit: Shutterstock

Dubai: Abu Dhabi wealth fund Mubadala and Goldman Sachs have entered a $1 billion 'partnership' to co-invest in private credit opportunities throughout Asia-Pacific markets.

The partnership will be managed by Private Credit at Goldman Sachs Alternatives, with a 'dedicated on-the-ground team' in multiple Asia-Pacific markets. The Goldman Sach's private credit team numbers 165 credit investment professionals and who oversee more than $110 billion in assets under management.

India focus

The new tie up will enable both Mubadala and Goldman sachs to continue scaling their investment activity in the Asia Pacific credit market. The $1 billion to be deployed will be long-term capital. The partnership will have a 'particular focus on India'.

Last year, Goldman Sachs opened a new office in Abu Dhabi Global Market (ADGM). Marc Nachmann, Global Head of Asset & Wealth Management at Goldman Sachs, said: “This partnership bolsters the expansion of our Asia Credit platform and investment in new opportunities across the Asia Pacific region, where bespoke credit solutions are needed. We continue to believe our rigorous underwriting and dedicated on-the-ground sourcing provides us differentiated investment opportunities."

Since 2009, Mubadala’s Credit Investments unit had been investing in private debt opportunities, with a focus on 'direct lending' to middle market and large cap companies. While geographically, the unit’s focus primarily had been on North America and Europe, it has been strengthening its exposure in the 'rapidly growing' Asia Pacific credit market.

'Central to Mubadala's growth strategy'

“The diverse and rapidly growing economies, as well as the increasing private equity deal volumes, are significantly driving demand in Asia Pacific for customized credit solutions from non-traditional lenders," said Omar Eraiqat, Deputy CEO 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.”