Goldman Strikes $1 Billion Private Credit Deal With Mubadala

(Bloomberg) — Goldman Sachs Group Inc. has clinched $1 billion from Mubadala Investment Co. to scour for more private credit deals in Asia.

The Abu Dhabi sovereign wealth fund and Goldman’s asset-management arm struck a partnership to invest alongside each other in the Asia-Pacific region, with a particular focus on India. The pact follows a similar mandate the New York-based firm received from the Ontario Municipal Employees Retirement System in September.

“Some of the investors might be underpenetrated across private credit in general and they are looking at getting more exposure across this asset class,” James Reynolds, the head of direct lending at Goldman’s money management unit, said in an interview. “That’s where partnering with these powerful institutions creates a win-win.”

The $1.7 trillion private credit market has more than doubled in size over the past five years as investors flocked to the asset class seeking higher returns. It’s quickly established itself as a permanent investment bucket for pension funds, endowments and sovereign wealth funds and become a major source of funding for companies and private equity firms.

For years, investors across the Middle East showed little interest in private debt: the asset class offered yields that were too low for their return targets. Yet higher interest rates and the market’s overall growth have recently led to a shift in sentiment.

Institutions like Mubadala and the Abu Dhabi Investment Authority have struck partnerships to strengthen their presence in the market and managers including Blue Owl Capital Inc. and Hayfin Capital Management have expanded their presence in the region to drum up business.

While North America and Europe have gotten crowded with dozens of private credit firms looking to lend money directly to companies — mostly in the context of leveraged buyouts — the market is significantly less developed in Asia Pacific. Goldman is among the few private credit titans making a big push into the region. Som Krishna helps run the asset management unit’s credit business in Asia.

“What these markets need is a blossoming, growing private equity industry,” Reynolds said. “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.”

Read more: Blue Owl Eyes More Middle East Money With Plans for New Office

Private credit tie-ups have been on an upswing in the Middle East over the past year. Barclays is pursuing a partnership with AGL Credit Management with anchor capital from the Abu Dhabi Investment Authority, while Mubadala has already struck deals with Ares Management Corp. and Blue Owl.

Mubadala, which has around $300 billion in assets under management and is one of Abu Dhabi’s three main sovereign wealth funds, is looking to double its exposure to Asia by 2030 to capitalize on faster-growing economies and diversify its investment portfolio.

Goldman oversees about $110 billion in private-credit assets and has outlined plans to double that in the coming years. In pursuit of that target, the firm recently tapped Greg Olafson as its new global head of private credit and elevated Reynolds to his current role.

Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, The Digital Banker will share the Data with our associate companies (including event and content sponsors) to promote their products and services. You will also be automatically subscribed as a user on www.thedigitalbanker.com. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            Registration Form

              Data Protection

              The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

              Registration Form

                Data Protection

                The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                Registration Form

                  Data Protection

                  The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                  The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

                  COVID-19
                  Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

                  Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

                  The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

                  Request Nomination Pack

                  Error: Contact form not found.