On February 26th, China Securities Journal and CSI Taurus reporter learned from Goldman Sachs that Goldman Sachs and global sovereign investment firm Mubadala Investment Company (hereinafter referred to as "Mubadala") have announced the establishment of an independent management account with a total amount of up to $1 billion to jointly invest in the private equity credit field in the Asia Pacific region.
This account is managed by Goldman Sachs Alternative Investment's private equity credit team stationed in multiple markets across the Asia Pacific region. Goldman Sachs' global private equity credit team is composed of over 165 senior credit investment professionals, with asset management scale of over 110 billion US dollars. With Goldman Sachs' business network and professional capabilities, it actively explores and evaluates global credit opportunities. Since 1998, Goldman Sachs has invested in multiple markets in the Asia Pacific region, including China, South Korea, Japan, India, Southeast Asia, Australia, and New Zealand.
This newly established independent management account will allow both parties to expand their investment activities in the already established and growing Asia Pacific credit market. This independently managed account plans to deploy $1 billion in long-term capital to provide customized private equity credit solutions for high-quality enterprises and investment institutions in the Asia Pacific region. The investment scope will involve a wide range of private equity credit categories, covering multiple markets, with a particular focus on investment opportunities in India.
In 2023, Goldman Sachs announced the opening of an office at the Abu Dhabi International Financial Center in the United Arab Emirates to expand its business in the East and North Africa region.
The new office further enriches Goldman Sachs' business network in the region and will strengthen the connection between the company and its clients. The establishment of the Abu Dhabi International Financial Center office continues Goldman Sachs' long-term strategy of expanding its business and strengthening customer service in the region.
Marc Nachmann, Global Head of Asset and Wealth Management at Goldman Sachs, said, "We are pleased to announce the partnership between Mubadala and Goldman Sachs for alternative investments. This partnership will help expand Goldman Sachs' Asian credit platform, strengthen investment in new opportunities in the Asia Pacific region, and meet the market's demand for high-quality credit financing solutions. We firmly believe that Goldman Sachs' rigorous project evaluation capabilities and project discovery capabilities rooted in the local market provide us with differentiated investment opportunities. We look forward to working closely with Mubadala to continuously deepen our partnership."
Greg Olafson, Global Head of Alternative Investment Private Credit at Goldman Sachs, said, "The Asia Pacific private credit market holds vast development opportunities. The region's strong economic growth provides a favorable environment for private credit investors to support leading companies through flexible long-term capital. Currently, Asian private credit is in the early stages of entering a decisive development period. Goldman Sachs has been focusing on Asia Pacific investment opportunities for many years and looks forward to further expanding its investment through this cooperation with Mubadala."
"The diverse and rapidly growing economies and private equity trading volume in the Asia Pacific region are significantly driving local businesses' demand for customized credit solutions from non-traditional credit institutions," said Omar Eraiqat, Vice CEO of Mubadala Diversified Investment. "This collaboration with Goldman Sachs reflects our vision to expand our private credit business in the Asia Pacific region, which is also the core of Mubadala's strategic growth plan."
Fabrizio Bocciardi, Head of Credit Investment at Mubadala, said, "We look forward to unlocking new opportunities with Goldman Sachs in the Asia Pacific region, the engine of global economic growth. Especially in India, an important market, Goldman Sachs has strong business capabilities, and we see huge opportunities for private equity credit."
Mubadala's credit investment department has been investing in the private equity bond sector since 2009, focusing on medium-sized markets and large enterprises across various industries and asset classes. The department previously focused mainly on North America and Europe, but has recently strengthened its business in the rapidly growing Asia Pacific credit market.