Mubadala Investment Company, Abu Dhabi’s prominent sovereign wealth fund, is strengthening its focus on the Asia-Pacific region through a strategic partnership with Goldman Sachs Asset Management. This collaboration aims to deploy $1 billion into private credit opportunities across APAC markets, a move that aligns with Mubadala’s strategy to expand its footprint in this fast-evolving economic landscape.
The sovereign fund, which manages an estimated $276 billion in assets, has been actively increasing its exposure in Asia. A key driver of this push is the perceived under-investment in the region, as highlighted by Mubadala executives. The latest initiative with Goldman Sachs emphasizes private credit, which offers tailored financing solutions to businesses amid tightened traditional lending options in the region. Mubadala intends to increase the share of its portfolio allocated to Asia from the current 12% to 25% by 2030.
Private credit has emerged as a critical financing avenue in APAC due to rising demand for non-traditional lending options. This growth is fueled by challenges in accessing bank financing and the shifting dynamics of equity investments in commercial real estate and other sectors. Markets such as India, South Korea, and Hong Kong are seen as pivotal within Mubadala’s broader strategy, reflecting their robust economic growth and investment-friendly frameworks.
