Goldman Sachs and Mubadala Investment Company (Mubadala), a UAE global sovereign investor, have signed a $1 billion fund in which Mubadala and Goldman Sachs Alternatives will co-invest in private credit opportunities across Asia Pacific (Apac), according to a February 22 media release.
The partnership will be managed by the private credit team at Goldman Sachs Alternatives which has an “on-the-ground team” across Apac. The bank's global private credit team has 165 staff overseeing around $110 billion in assets under management (AUM). The team is led by London-based James Reynolds and New York-based Kevin Sterling, both titled global co-head of private credit.
The partnership is aiming to deploy $1 billion of long-term capital, offering private credit to “high quality companies and sponsors throughout the Apac region”, the release said. The partnership will invest "across the private credit spectrum" and in "multiple" Apac markets with a particular focus on India, according to the release.
The private credit market has been growing strongly in recent years as companies look for more flexible funding structures. Loans are often tied to floating interest rates.
Middle East and Asia
In 2023, Goldman Sachs expanded its footprint in the Middle East and North Africa (MENA) region by opening a new office in Abu Dhabi Global Market (ADGM), the international financial centre of UAE’s capital city Abu Dhabi, where Mubadala is also headquartered. The expansion has helped bring the bank's global network, including in Asia, closer to firms based in the Middle East.
Marc Nachmann, global head of asset & wealth management at Goldman Sachs, said in the release: “This partnership bolsters the expansion of our Asia credit platform and investment in new opportunities across the Apac 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. We look forward to working closely with Mubadala and growing this partnership between our firms.”
Since 2009, Mubadala’s credit investments unit has been investing in private debt opportunities, with a focus on direct lending to middle market and large cap companies. The unit’s focus has primarily been on North America and Europe, but is now increasing its exposure to the rapidly growing Apac credit market, the release said.
Omar Eraiqat, deputy CEO of diversified investments at Mubadala, added: “The diverse and rapidly growing economies, as well as the increasing private equity deal volumes, are significantly driving demand in Apac for customised credit solutions from non-traditional lenders. 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.”
Morgan Stanley has also recently opened an office in the ADGM.
