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Sovereign wealth fund Mubadala and Goldman Sachs will co-invest USD 1 bn in private credit in the Asia-Pacific region,according to a statement. The partnership will see the two deploy long-term capital to “high quality companies and sponsors” throughout the region, with a particular focus on India, the statement said.
How it will work: Goldman Sachs Alternatives’ private credit division will manage the fund and use its on-the-ground teams across Asia Pacific markets to scour for potential clients.
Background: Goldman Sachs inaugurated an office in the Abu Dhabi Global Market in May 2023. The US lender’s Abu Dhabi division is tasked with asset management, while its Dubai branch houses investment bankers.
It’s not Mubadala’s first foray into private credit: Mubadala set up a USD 2.5 bn JV with Alpha Dhabi to co-invest in global credit last year. In November 2023, the wealth fund took on the role of anchor investor for a private credit fund set up by Starz Real Estate and targeting European property. The sovereign investor also earmarked USD 1 bn each to alternative asset manager Blue Owl Capital’s technology lending strategy to finance tech and software companies, and its newly established JV with Ares Management.
It’s not just Mubadala: The Abu Dhabi Investment Authority also ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments. The asset class is expected to balloon to USD 2.3 tn in size by 2027, according to Morgan Stanley.
REMEMBER- Mubadala plans to more than double its assets in Asia — including India — to 25% from the 12% currently under the fund’s management, head of Mubadala’s life sciences and healthcare division Camilla Macapili Languille told Bloomberg earlier.
