By Hadeel Al Sayegh and Utkarsh Shetti

(Reuters) -Abu Dhabi’s sovereign wealth fund Mubadala Funding Firm has struck a $1 billion take care of Goldman Sachs to go after personal credit score offers in Asia, the businesses stated on Monday.

Mubadala and the U.S. financial institution agreed on a partnership to co-invest in personal credit score alternatives within the Asia Pacific area, with a selected give attention to India, the businesses stated in a press release.

The partnership shall be managed by Non-public Credit score at Goldman Sachs Options, with a devoted on-the-ground group throughout a number of Asia Pacific markets, Mubadala and Goldman stated.

The Abu Dhabi sovereign investor has been build up its publicity to non-public credit score markets via partnerships, leveraging on alternatives in distressed debt amid a excessive rate of interest surroundings.

Final yr, Goldman Sachs introduced it was opening a brand new workplace in Abu Dhabi, marking a big milestone for the Wall Road financial institution because it was sidelined from any new enterprise within the capital of the United Arab Emirates for its involvement within the 1MDB scandal.

The financial institution stated the brand new workplace will complement the agency’s rising regional presence, permitting the agency to deepen relationships with purchasers and meet them the place they’re.

Cash managers are vying for a slice of the rising personal credit score market that emerged after the 2008 monetary disaster. Non-public credit score funds are more and more competing with banks, together with for financing giant firm buyouts.

That has attracted the eye of sovereign wealth funds within the Gulf, together with the $300 billion Mubadala, considered one of Abu Dhabi’s three principal sovereign wealth funds, alongside Abu Dhabi Funding Authority and ADQ.

In March final yr, Mubadala solid a three way partnership with Ares to spend money on international credit score markets alternatives, beginning with an preliminary goal of $1 billion.

In the identical yr, it dedicated one other $1 billion to U.S.-based Blue Owl Capital’s credit score platform that can initially give attention to offering financing for know-how corporations.

Mubadala and UAE-based conglomerate Alpha Dhabi final yr introduced plans to deploy as much as 9 billion dirhams ($2.5 billion) over 5 years in credit score markets, with the 2 corporations leveraging on Mubadala’s relationship with U.S. asset supervisor Apollo, “to entry high-quality personal credit score funding alternatives”.

Mubadala has been investing in personal debt alternatives via its credit score funding unit since 2009, largely in North America and Europe, however has not too long ago strengthened its publicity within the Asia Pacific. Late final yr, Mubadala’s CEO stated the agency’s funding focus would more and more shift in the direction of Asia.