A collaboration worth 1 billion $ between Mubadala and Goldman Sachs

Goldman Sachs and the Mubadala Investment Company have announced that they have entered into a cooperation agreement worth one billion US dollars aimed at mutual investment in the available opportunities within the field of private credit investment, spanning various regions across Asia and the Pacific.

This partnership will be managed through the alternative finance division at Goldman Sachs, with a dedicated team working across various Asia-Pacific markets. The global alternative finance team consists of 165 investment experts specializing in credit investments, who are responsible for managing assets and investments exceeding a value of $110 billion.

Utilizing their expertise, capabilities, and Goldman Sachs’ extensive network, the team ensures and secures diverse borrowing opportunities globally. Since 1998, Goldman Sachs has made investments in several markets in the Asia-Pacific region, including Australia, New Zealand, India, Southeast Asia, China, Korea, and Japan.

This partnership aims to empower both companies to enhance and expand their investment activities within the wide and evolving credit offerings sector in the Asia-Pacific region.

The partnership plans to inject long-term investments of up to one billion U.S. dollars, providing customized credit solutions that meet the needs of leading companies throughout the region.

The investments will be made in the spectrum of private credit, and it is anticipated that these investments will cover various markets in the Asia-Pacific region, with special attention given to India as part of this process.

In 2023, Goldman Sachs announced its plans to strengthen its presence in the Middle East and North Africa by establishing a new branch in Abu Dhabi within the Abu Dhabi Global Market, which is considered the international financial hub of the UAE capital.

The new headquarters will enhance the company’s growing regional presence by allowing it to strengthen relationships and improve communications with customers through direct interaction in their locales

. Establishing a new office within the Abu Dhabi Global Market framework is part of the company’s long-term strategic plan aimed at continually expanding its outreach and services to clients and partners in the region.

On this special occasion, Mark Nachman, Global Head of Asset and Wealth Management at Goldman Sachs, expressed his excitement, saying,

“We are delighted to announce the partnership between Mubadala and Goldman Sachs Alternatives. This partnership will serve to strengthen and broaden our platform for private credit in Asia and will allow us to invest in emerging opportunities across the Asia Pacific region—a region that requires custom-made credit solutions. We are fully aware of the significant role we play in identifying investment opportunities and providing clients with a range of effective options, which in turn, grants us access to a wide array of diverse investment choices. We look forward to a fruitful and close cooperation with Mubadala, and to the growth and expansion of our partnership’s horizons.”

Greg Olafson, the head of Global Private Credit Services at Goldman Sachs Alternatives, stated that the private credit opportunities in Asia and the Pacific are characterized by their breadth and diversity.

He noted that, considering the region’s rapid economic growth and favorable conditions for private credit institutions to support the development of prominent companies through the provision of adaptable capital with a long-term horizon, Olafson believes we are still at the beginning of a new and significant era for private credit in the region.

He also expressed Goldman Sachs’ anticipation through its partnership with Mubadala to enhance and expand their investment interests and activities in Asia and the Pacific.

Omar Arigat, the Executive Vice President of the Diversified Investments sector at Mubadala, stated:

“Economies that are diversified across multiple sectors and experiencing rapid development, along with an increase in the volume of transactions in the private equity market in the Asia-Pacific region, significantly boost the demand for financing tools that are specifically designed by non-traditional lending institutions. As for the partnership with Goldman Sachs, it aligns with our goals towards strengthening and expanding our activities in the private credit sector in the Asia-Pacific region, which is a key and critical area for Mubadala’s strategic growth plans.”

Fabrizio Boccardi, responsible for the Credit Investments department at Mubadala, mentioned that they look forward to partnering with Goldman Sachs to explore new investment horizons and opportunities across the Asia-Pacific region, which plays a crucial role in global economic growth.

He particularly highlighted India as an important and highly significant market, offering numerous exceptional opportunities in the private credit sector. He also noted Goldman Sachs’ significant influence and presence in that market.

Since 2009, the Credit Investments unit at Mubadala has been injecting investments into private debt opportunities, primarily focusing on corporate loans in the mid and large-cap markets.

This spans a wide range of business sectors and various asset types. Geographically, the unit’s main focus has been on North America and Europe. However, they have recently strengthened their presence in the rapidly growing debt market of the Asia-Pacific region.