Goldman Sachs and Abu Dhabi’s Mubadala ink $1 billion partnership to invest in Asia Pacific

Goldman Sachs and Abu Dhabi’s sovereign wealth fund, Mubadala, have joined forces to invest $1 billion in the Asia-Pacific region, with a particular focus on India.

The strategic partnership aims to tap into the growth potential and opportunities in the region, particularly in private credit.

Goldman Sachs’ Private Credit at Goldman Sachs Alternatives will manage this separately managed account.

It will invest long-term capital in high-quality companies across various sectors and markets in the Asia-Pacific region.

This move aligns with Goldman Sachs’ expansion strategy in the Middle East, having recently opened an office in Abu Dhabi Global Market.

The partnership comes as India is poised to be the fastest-growing G20 economy in the 2023-24 fiscal year.

Recognizing India’s potential, the UAE and other Gulf states have increased their economic engagement with the country.

The UAE has set a target to invest $75 billion in India, while Saudi Arabia aims to invest $100 billion.

Fabrizio Bocciardi, Mubadala’s head of credit investments, believes India has significant opportunities in private credit, where Goldman Sachs has a strong presence and expertise.

Greg Olafson, global head of private credit at Goldman Sachs Alternatives, highlights the promising outlook for private credit in Asia Pacific, driven by economic growth and the need for flexible, long-term capital.

Omar Eraiqat, Mubadala’s deputy CEO of diversified investments, views the partnership as a positive step in expanding their private credit exposure in Asia-Pacific, which aligns with their strategic growth initiatives.

Mubadala manages a global portfolio of $276 billion, focusing on diversifying the UAE economy.