Goldman Sachs Finalizes $1 Billion Private Credit Deal with Abu Dhabi’s Mubadala

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Goldman Sachs and the Abu Dhabi sovereign wealth fund Mubadala Investment Company have formed a $1 billion partnership to launch a separately managed account for co-investing in private credit opportunities in the Asia Pacific region. Managed by Private Credit at Goldman Sachs Alternatives, the partnership aims to expand investment activities in the growing Asia-Pacific credit market, with a focus on India.

The collaboration underscores the belief that the Asia-Pacific region offers significant opportunities in private credit due to its robust economic growth and conducive conditions for private lenders to provide flexible, long-term capital to support company growth.

Mubadala’s Credit Investments unit, which has been investing in private debt opportunities since 2009 primarily in North America and Europe, has recently expanded its geographic focus to include the Asia Pacific. The region’s diverse and rapidly growing economies, along with increasing private equity deal volumes, are driving demand for customized credit solutions from non-traditional lenders.

India, in particular, is highlighted as a key market with substantial opportunities in private credit, leveraging Goldman Sachs’ strong exposure and capabilities in the country.

Mubadala, with approximately $300 billion in assets under management (AUM), aims to double its exposure to Asia, moving closer to 25% of its portfolio by 2030. The firm is strategically focused on key Asian markets, including India, China, Japan, and South Korea.

Goldman Sachs’ Private Credit team, established in 1996, consists of 165 credit investment professionals overseeing about $110 billion in assets across various credit strategies. The firm plans to expand its private credit business significantly in the coming years, reflecting the growing demand and opportunities in the market.