Feb 26 Reuters Abu Dhabi39;s sovereign wealth fund Mubadala Investment CompanyMUDEV.UL has struck a 1 billion deal with Goldman Sachs to go after private credit deals in Asia, the companies said on Monday.

Mubadala and the U.S. bank agreed on a partnership to coinvest in private credit opportunities in the Asia Pacific region, with a particular focus on India, the companies said in a statement.

The partnership will be managed by Private Credit at Goldman Sachs Alternatives, with a dedicated ontheground team across multiple Asia Pacific markets, Mubadala and Goldman said.

The Abu Dhabi sovereign investor has been building up its exposure to private credit markets through partnerships, leveraging on opportunities in distressed debt amid a high interest rate environment.

Last year, Goldman Sachs announced it was opening a new office in Abu Dhabi, marking a significant milestone for the Wall Street bank since it was sidelined from any new business in the capital of the United Arab Emirates for its involvement in the 1MDB scandal.

The bank said the new office will complement the firms growing regional presence, allowing the firm to deepen relationships with clients and meet them where they are.

Money managers are vying for a slice of the growing private credit market that emerged after the 2008 financial crisis. Private credit funds are increasingly competing with banks, including for financing large company buyouts.

That has attracted the attention of sovereign wealth…