Investing.com -- Goldman Sachs (NYSE:GS) has agreed to a $1 billion deal with Abu Dhabi's sovereign wealth fund Mubadala Investment Company to pursue private credit deals in the Asia Pacific region, according to media reports on Monday.
Citing a statement from the firms, the reports said that the partnership will be managed by the private credit team at Goldman Sachs Alternatives. The companies will be looking to lend to "high-quality companies and sponsors" across Asia Pacific markets, focusing in particular on India, the reports added.
The move comes as interest continues to grow in private credit, which is valued at roughly $1.5 trillion. Spurred on in part by the prospect of higher returns during a time of elevated borrowing costs, the market for this fundraising channel has more than doubled over the past five years.
Although the private credit market in Asia Pacific remains smaller than its counterparts in North America and Europe, deals in the space have been rising in the Middle East.
Last year, Mubadala committed $1 billion in U.S.-based alternative investment manager Blue Owl Capital's credit platform that is focused on providing funding for technology businesses. It also created a private debt-focused joint venture with Ares Management (NYSE:ARES) that aimed to deploy around $1 billion into the market.