An Emirati woman paddles a canoe past 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 signed a $1 billion private credit partnership on Monday to jointly invest in the Asia-Pacific region, with a particular focus on India, said the institutions in a joint statement.
The separately managed account, called Partnership, will be managed by Private Credit at Goldman Sachs Alternatives, with staff based on-site in various markets across the region. The long-term capital will be invested in “high-quality companies…across the private credit spectrum” in a range of markets across Asia Pacific.
The news follows Goldman’s expansion in the Middle East in 2023 with the opening of its office in Abu Dhabi Global Market, the financial hub of the UAE capital.
This also comes as the UAE and other Gulf states expand their economic footprint in India, which will be the fastest-growing G20 economy in the 2023/24 financial year. The UAE announced in October 2023 a target of investing $75 billion in India over a period of time, while Saudi Arabia set an investment target of $100 billion in the country.
““India in particular stands out as a key market with significant opportunities in the retail credit space and Goldman Sachs has a strong presence and capability,” Fabrizio Bocciardi, head of credit investments at Mubadala, said in a press release.
“The opportunity for personal credit in Asia Pacific is enormous,” said Greg Olafson, global head of personal 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 at the beginning of a pivotal era for private credit in Asia Pacific .”
He said the partnership with Mubadala will allow the bank to expand its “long-established investment focus on the region.”
Omar Eraiqat, deputy CEO of diversified investments at Mubadala, said the partnership with Goldman Sachs “complements our efforts to expand our private credit exposure in APAC, a region that is central to Mubadala’s strategic growth initiatives.”
According to the company, Mubadala Investment Company manages a $276 billion global portfolio spanning six continents and a range of sectors and asset classes, with a focus on diversifying the UAE economy.
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2024-02-26 15:43:34
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