Private equity giant TPG has acquired Angelo Gordon, an investment firm focused on the credit and real estate markets, for $2.7 billion.
Affiliated company Announcing the deal Early Monday morning, a week after the reports surfaced TPG is negotiating Buy Angelo Gordon. The acquisition will include approximately $970 million in cash and up to 62.5 million restricted stock shares of TPG Operating Group and TPG.
The move brings TPG Chief Executive Jon Winkelreid back into credit investing, an area the firm left after it spun off from Sixth Street in 2020. The company has been looking for a way back since then.
Angelo Gordon will return this way. The New York-based firm manages about $53 billion in assets, most of which are credit or real estate. When the deal closes, TPG will expand to $38 billion in assets under management in real estate alone.
As of the end of last year, the firm managed assets totaling $208 billion.
TPG’s move comes as private equity firms have been ramping up their direct lending business as regional banks either collapse or pull back on activity. While diversifying its business, the acquisition could lead to more direct lending.
Both firms have worked as sellers in commercial real estate since the early days of the pandemic.
May 2020, TPG RE Finance $1 billion sold Raise cash and meet obligations in commercial real estate debt.Most recently, Angelo Gordon sell half of the shares In Brookfield DTLA Fund Office Trust Investor, the public entity that owns Brookfield’s investment portfolio in downtown Los Angeles.
Angelo Gordon has 650 employees in 12 offices on three continents. According to the press release, it will be an investment platform within TPG. Co-CEOs Adam Schwartz and Josh Baumgarten will become co-managing partners of the platform, reporting to Winkelreid.
The acquisition is expected to close in the fourth quarter.
