Saudi Arabia: Business entities in the Asia Pacific region are poised to benefit from a $1 billion partnership between Emirati firm Mubadala Investment Co. and Goldman Sachs.   

To be managed by Private Credit at Goldman Sachs Alternatives, with dedicated on-the-ground teams across multiple Asia Pacific markets, the partnership aims to deploy long-term capital, offering customized private credit solutions to high-quality companies and sponsors in the region, according to a press statement.   

The release added that the global Private Credit team, consisting of 165 experienced credit investment professionals managing over $110 billion in assets, leverages Goldman Sachs’ network and capabilities to source and underwrite global lending opportunities.   

Marc Nachmann, global head of asset and wealth management at Goldman Sachs, said: “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.”   

He added: “We continue to believe our rigorous underwriting and dedicated on-the-ground sourcing provides us differentiated investment opportunities.”    

The collaboration plans to invest across the private credit spectrum, targeting multiple Asia Pacific markets, with a particular focus on India.  

This aligns with both firms’ endeavors to continue scaling their investment activity in the growing Asia Pacific credit market.   

“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,” said Omar Eraiqat, deputy CEO of diversified investments at Mubadala. 

“This partnership with Goldman Sachs compliments our aspirations to grow our private credit exposure in Asia Pacific, a region that is central to Mubadala’s strategic growth initiatives,” he added.   

Meanwhile, the Global Head of Private Credit at Goldman Sachs Alternatives Greg Olafson, said: “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 at the early stages of a defining era for private credit in Asia Pacific.”

Head of Credit Investments at Mubadala Fabrizio Bocciardi, also said: “We look forward to working alongside Goldman Sachs to unlock new opportunities throughout the Asia Pacific region, a leading driver of global economic growth.” 

Since 2009, Mubadala’s Credit Investments unit has been interested in private debt prospects, with a particular focus on direct lending to the middle market as well as large-cap firms across a wide range of industries and asset classes.