Goldman Sachs Alternative and Mubadala Investment Company have entered into a $1 billion private credit partnership aimed at investing in the Asia Pacific region. The account will be managed separately, with both companies co-investing in private credit opportunities throughout the region.
As per a press release by Goldman Sachs, the partnership will be overseen by its Private Credit division under Goldman Sachs Alternatives. This division is composed of 165 credit investment professionals who currently manage more than $110 billion in assets while underwriting global lending opportunities. The agreement is set to help both companies expand their investment activity through the rapidly growing Asia Pacific credit market, providing customized private credit solutions to companies and sponsors in the region.
Goldman Sachs perceives significant potential for economic growth in the Asia Pacific region. Greg Olafson, Global Head of Private Credit at Goldman Sachs Alternatives, said: "The opportunity in private credit in Asia Pacific is expansive. 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. Through this partnership with Mubadala, we look forward to expanding our long-established investment focus on the region." Goldman Sachs has over $450 billion in assets worldwide and invests across a broad spectrum of investment mechanisms.
According to a press release by Mubadala, it has been investing in private debt opportunities since 2009 with an emphasis on direct lending to large cap and middle market companies. The industries and asset classes they invest in are diverse. Prior to this agreement, the company primarily focused its investments on North America and Europe. They view this partnership as an excellent opportunity to broaden their investment operations. Currently, Mubadala manages a portfolio worth $276 billion across various sectors.
