Goldman Sachs and Mubadala to deploy US$1b across APAC
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The news: Goldman Sachs has secured USD1 billion ($1.53 billion) from Mubadala Investment Co. to hunt for private credit deals across APAC.
The numbers: Mubadala is one of Abu Dhabi’s three main sovereign wealth funds, with around USD300 billion in assets under management. Goldman currently oversees around USD110 billion in private credit assets and plans to double this number in the medium term.
The context: The Abu Dhabi sovereign wealth fund will partner with Goldman to invest across Asia Pacific with a focus on India, in the latest show of Middle Eastern appetite for private debt. Investors from the region have previously felt private debt’s yields were too low, however interest rates and market growth have led to a shift in sentiment.
The private credit market has doubled in size over the past five years to USD1.7 trillion, and while North America and Europe are awash with private credit lending, the market is not as developed across APAC.
What they said: In an interview with Bloomberg, James Reynolds, head of direct lending in Goldman Sach’s money management unit said: “What these markets need is a blossoming, growing private equity industry. We want to partner up with investors who want to have Asia exposure and they want to go with a platform that has experience and track record.”
