An Emirati woman paddles a boat near skyscrapers in Abu Dhabi, United Arab Emirates, on Wednesday, October 2, 2019.
Christopher Pike | Bloomberg | Getty Images
Dubai, United Arab Emirates – Goldman Sachs and Abu Dhabi sovereign wealth fund Mubadala on Monday signed a $1 billion private credit partnership to jointly invest in the Asia-Pacific region, with a particular focus on India, the two institutions said in a joint statement.
The separately managed account, called the “partnership”, will be managed through Goldman Sachs Alternatives' private credit, with staff on the ground in various markets across the region. The long-term capital will be invested in “high-quality companies… across the private credit spectrum” across a number of Asia-Pacific markets.
This news comes on the heels of Goldman's 2023 expansion into the Middle East with the opening of its office in Abu Dhabi Global Market, the financial hub of the UAE capital.
This also comes at a time when the UAE and other Gulf countries are increasing their economic footprint in India, which is set to be the fastest growing G20 economy for the financial year 2023-2024. In October 2023, the UAE announced a target of investing $75 billion in India over a period of time, while Saudi Arabia set an investment target in the country of $100 billion.
“India, in particular, stands out as a key market with significant opportunities in private credit, where Goldman Sachs has strong exposure and capabilities,” Fabrizio Bocciardi, head of credit investments at Mubadala, said in a press release.
“The opportunities in private credit in the Asia-Pacific region are broad,” said Greg Olafson, global head of private credit at Goldman Sachs Alternatives. “With strong economic growth in the region and favorable conditions for private lenders to support the growth of leading companies by providing flexible, long-term capital, we believe we are in the early stages of a defining era for private credit in the Asia-Pacific region.”
He said that the partnership with Mubadala will enable the bank to expand its “established investment focus in the region.”
Omar Erekat, executive vice president of diversified investments at Mubadala, said the partnership with Goldman Sachs “complements our aspirations to grow our private credit exposure in the Asia-Pacific region, a region that is central to Mubadala’s strategic growth initiatives.”
Mubadala Investment Company manages a global portfolio worth $276 billion spanning six continents and a range of sectors and asset classes, according to the company, with a focus on diversifying the UAE’s economy.
