In a strategic move to expand its private credit business in Asia, Goldman Sachs Group Inc (NYSE:GS) has secured a $1 billion deal with Mubadala Investment Co., a sovereign wealth fund based in Abu Dhabi.
What Happened: The $1 billion deal will enable Goldman to pursue private credit deals in the Asia-Pacific region, with a particular focus on India, reported Bloomberg. This partnership follows a similar mandate Goldman received from the Ontario Municipal Employees Retirement System in September.
James Reynolds, head of direct lending at Goldman’s asset management unit, explained that some investors are seeking more exposure across the private credit asset class. The $1.7 trillion private credit market has seen significant growth over the past five years, attracting investors looking for higher returns.
"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."
Goldman’s move ...