Private Credit Boost

Private Credit Boost

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  • Goldman Sachs Group Inc. has secured a substantial $1 billion investment from Mubadala Investment Co. to pursue private credit opportunities in Asia. The partnership between the Abu Dhabi sovereign wealth fund and Goldman’s asset-management arm is geared towards co-investing in the Asia-Pacific region, with a specific focus on India. This agreement mirrors Goldman's earlier mandate from the Ontario Municipal Employees Retirement System, demonstrating a growing trend of strategic alliances in the private credit sector.
  • The private credit market, now valued at $1.7 trillion, has experienced significant growth in recent years, attracting investors seeking enhanced returns. Historically, Middle Eastern investors showed limited interest in private debt due to relatively low yields. However, changing market dynamics, including rising interest rates, have spurred a shift in sentiment, prompting institutions like Mubadala to forge partnerships to expand their presence in this lucrative market segment. Goldman's move into the Asia-Pacific private credit space underscores the region's untapped potential and the growing appetite for alternative investments.

Why it matters

With the goal of doubling its private credit assets, Goldman is leveraging its expertise and track record to meet the evolving needs of investors seeking exposure to dynamic markets like Asia.


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