Goldman Sachs Alternatives and Mubadala Sign US$1bn Private Credit Partnership to invest in Asia Pacific
NEW YORK / ABU DHABI, February 26, 2024 - Goldman Sachs and Mubadala Investment Company (“Mubadala”), a global sovereign investor, have signed a $1bn separately managed account (“Partnership”) in which Mubadala and Goldman Sachs will co-invest in private credit opportunities throughout the Asia Pacific region.
The Partnership will be managed by Private Credit at Goldman Sachs Alternatives, with a dedicated on-the-ground team across multiple Asia Pacific markets. The global Private Credit team consists of 165 seasoned credit investment professionals overseeing more than $110bn in assets under management (AUM) and drawing on the network, expertise and capabilities of Goldman Sachs to source and underwrite global lending opportunities. Since 1998, Goldman Sachs has invested across multiple Asia Pacific markets, including Australia and New Zealand, India, Southeast Asia, China, Korea and Japan.
This mandate will enable both firms to continue scaling their investment activity in the large and growing Asia Pacific credit market. The Partnership will aim to deploy U$1bn of long-term capital, offering customized private credit solutions to high quality companies and sponsors throughout the Asia Pacific region. The Partnership will invest across the private credit spectrum and is expected to invest across multiple Asia Pacific markets with a particular focus on India.
In 2023, Goldman Sachs announced that it is expanding 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 the UAE’s capital city.
The new office will complement the firm’s growing regional presence, allowing the firm to deepen relationships with clients and meet them where they are. Establishing a new office in ADGM is part of the firm’s long-term strategy to continue growing its footprint and client offering in the region.
Marc Nachmann, Global Head of Asset & Wealth Management at Goldman Sachs, said: “We are pleased to announce the partnership between Mubadala and Goldman Sachs Alternatives. 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. We look forward to working closely with Mubadala and growing this partnership between our firms.”
Greg Olafson, Global Head of Private Credit at Goldman Sachs Alternatives, said: “The opportunity in private credit in Asia Pacific is expansive. With strong economic growth in the region and favourable 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. Through this partnership with Mubadala, we look forward to expanding our long-established investment focus on the region.”
Omar Eraiqat, Deputy CEO of Diversified Investments at Mubadala, said: “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. 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.”
Fabrizio Bocciardi, Head of Credit Investments at Mubadala, added:“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.”
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 across a variety of industries and asset classes. Geographically, the unit’s focus has primarily been on North America and Europe, but has recently been strengthening its exposure in the rapidly growing Asia Pacific credit market.
About Private Credit at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $2.8 trillion in assets under supervision globally as of December 31, 2023.
Established in 1996, Private Credit at Goldman Sachs Alternatives is one of the world’s largest private credit investors with over $110 billion in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies. The team’s deep industry and product knowledge, extensive relationships and global footprint position the firm to deliver scaled outcomes with speed and certainty, supporting companies from the lower middle market to large cap in size.
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About Mubadala Investment Company
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi.
Mubadala’s $276 billion (AED 1,015 billion) portfolio spans six continents with interests in multiple sectors and asset classes. The company leverages its deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates.
For more information about Mubadala Investment Company, please visit: www.mubadala.com