Mubadala, Goldman Sachs Announce $1 Billion Pact for Asia-Pacific Private Credit

Mubadala, Goldman Sachs Announce $1 Billion Pact for Asia-Pacific Private Credit

By Staff Writer, 28 February 2024

The UAE sovereign investor Mubadala Investment Company and global financial giant Goldman Sachs have inked a landmark $1 billion agreement aimed at delving into private credit ventures across Asia, with a pronounced focus on the burgeoning market of India.

According to a statement released on Monday, the partnership between the Abu Dhabi fund and Goldman Sachs Alternatives, its asset management arm, marks a strategic alliance poised to explore opportunities within the private credit landscape spanning various Asia Pacific regions.

Under the terms of the agreement, Goldman Sachs Alternatives will spearhead the management of the partnership, deploying a specialized team on the ground across multiple Asia Pacific markets to facilitate seamless execution.

Omar Eraiqat, Deputy CEO of Diversified Investments at Mubadala, highlighted the dynamic and swiftly expanding economies across Asia Pacific as pivotal drivers for tailored credit solutions, particularly from non-traditional lenders.

Eraiqat emphasized, "The diverse and rapidly growing economies, as well as the increasing private-equity deal volumes, are significantly driving demand in Asia Pacific for customised credit solutions from non-traditional lenders."

Private credit, serving as a bespoke avenue for companies to secure funding through tailored financial products from non-bank entities, is gaining traction amidst evolving market dynamics.

With assets under management totaling approximately $300 billion, the Abu Dhabi fund is ambitiously aiming to amplify its exposure to the Asian market, targeting a potential doubling by 2030.

Fabrizio Bocciardi, Head of Credit Investments at Mubadala, underscored India's prominence within this strategic move, citing the nation as a pivotal market brimming with abundant opportunities in the realm of private credit.

Bocciardi noted, "India in particular stands out as a key market with significant opportunities in private credit, and where Goldman Sachs has strong exposure and capabilities."

This collaboration between Mubadala and Goldman Sachs not only underscores the growing allure of Asia's private credit markets but also highlights the strategic foresight of both entities in capitalizing on emerging opportunities within the region.

Source: Brinda Darasha / Zawya

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