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Goldman (GS) in Partnership With Mubadala Invests in $1B Fund
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The Goldman Sachs Group, Inc. (GS - Free Report) , intending to capitalize on the significant growth of the private credit industry, entered a partnership with Mubadala Investment, an Abu Dhabi sovereign wealth fund. The companies will jointly invest $1 billion in private credit deals in multiple Asia-Pacific markets with a particular focus on India.
The funds will be deployed through a separately managed account, which will be managed by GS through its dedicated on-ground team in Asia and a global private credit team.
A number of financial institutions have been making efforts to enter into the $1.7 trillion global private credit market, given attractive opportunities and high demand in the space. Mubadala has been investing in private debt opportunities since 2009, mostly in the North America and Europe markets, but it has been recently focusing attention toward the Asia market.
Omar Eraiqat, the co-head of the credit investment unit at Mubadala stated, "The diverse and rapidly growing economies, as well as the increasing private-equity deal volumes, are significantly driving demand in Asia Pacific for customized credit solutions from non-traditional lenders."
Further, Greg Olafson, global head of private credit at Goldman said, "The opportunity in private credit in Asia-Pacific is expansive."
Per Preqin’s data, private credit market in the region has grown 3.5 times in the last 10 years. Notably, in 2022, the market size in the region reached $81.3 billion and is further expected to touch $100 billion by 2027.
The partnership is similar to the one Goldman made with Ontario Municipal Employees Retirement System in September 2023 to co-invest in private credit transactions in the Asia Pacific region.
The expansion into the private credit space will likely drive Goldman’s revenue growth amid efforts to scale back its consumer banking business and focusing on its core strengths of investment banking, trading and asset management.
Goldman’s shares have gained 20% in the past six months compared with the industry’s growth of 12%.
Blackstone Inc. (BX - Free Report) entered a partnership with BNP Paribas SA (BNPQY - Free Report) to form a new fund financed by French individuals. The aim of the fund will be to invest in companies in private debt.
BX’s vehicle, dubbed “Blackstone Credit Privé Europe SC,” aims to tap into the large pool of savings held by French retail investors via the country’s most popular tax-efficient life insurance product.
This new France-dedicated fund, which is aimed at investing in middle-sized companies, fits well with Blackstone’s group strategy targeting individual investors.
BNPQY and Blackstone said that clients of the French lender’s private bank unit and insurance division would benefit from an exclusivity period ending on Apr 5, 2024, to invest in the fund.
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Goldman (GS) in Partnership With Mubadala Invests in $1B Fund
The Goldman Sachs Group, Inc. (GS - Free Report) , intending to capitalize on the significant growth of the private credit industry, entered a partnership with Mubadala Investment, an Abu Dhabi sovereign wealth fund. The companies will jointly invest $1 billion in private credit deals in multiple Asia-Pacific markets with a particular focus on India.
The funds will be deployed through a separately managed account, which will be managed by GS through its dedicated on-ground team in Asia and a global private credit team.
A number of financial institutions have been making efforts to enter into the $1.7 trillion global private credit market, given attractive opportunities and high demand in the space. Mubadala has been investing in private debt opportunities since 2009, mostly in the North America and Europe markets, but it has been recently focusing attention toward the Asia market.
Omar Eraiqat, the co-head of the credit investment unit at Mubadala stated, "The diverse and rapidly growing economies, as well as the increasing private-equity deal volumes, are significantly driving demand in Asia Pacific for customized credit solutions from non-traditional lenders."
Further, Greg Olafson, global head of private credit at Goldman said, "The opportunity in private credit in Asia-Pacific is expansive."
Per Preqin’s data, private credit market in the region has grown 3.5 times in the last 10 years. Notably, in 2022, the market size in the region reached $81.3 billion and is further expected to touch $100 billion by 2027.
The partnership is similar to the one Goldman made with Ontario Municipal Employees Retirement System in September 2023 to co-invest in private credit transactions in the Asia Pacific region.
The expansion into the private credit space will likely drive Goldman’s revenue growth amid efforts to scale back its consumer banking business and focusing on its core strengths of investment banking, trading and asset management.
Goldman’s shares have gained 20% in the past six months compared with the industry’s growth of 12%.
Image Source: Zacks Investment Research
GS presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Partnerships of Other Finance Firms
Blackstone Inc. (BX - Free Report) entered a partnership with BNP Paribas SA (BNPQY - Free Report) to form a new fund financed by French individuals. The aim of the fund will be to invest in companies in private debt.
BX’s vehicle, dubbed “Blackstone Credit Privé Europe SC,” aims to tap into the large pool of savings held by French retail investors via the country’s most popular tax-efficient life insurance product.
This new France-dedicated fund, which is aimed at investing in middle-sized companies, fits well with Blackstone’s group strategy targeting individual investors.
BNPQY and Blackstone said that clients of the French lender’s private bank unit and insurance division would benefit from an exclusivity period ending on Apr 5, 2024, to invest in the fund.