Leading global alternative asset management firm TPG, which has headquarters in Fort Worth and San Francisco, will acquire Angelo Gordon in a deal valued at roughly $2.7 billion. It marks a significant expansion into credit investing for TPG.
New York City-based Angelo Gordon is a $73 billion alternative investment firm focused on credit and real estate investing.
“This strategic transaction meaningfully expands our investing capabilities and broadens our product offering. The addition of Angelo Gordon also underscores our continued focus on growing and scaling through diversification, while driving long-term value for our shareholders,” TPG Chief Executive Officer Jon Winkelried said in a statement. “Following more than a year of building relationships between the leadership teams of both organizations, we are confident the combination represents a strong strategic and cultural fit and will create additional opportunities for employees of both firms.”
TPG said it will acquire Angelo Gordon in a cash and equity transaction that includes an estimated $970 million in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG. The transaction also includes an earnout based on Angelo Gordon’s future financial performance, valued at up to $400 million, the companies said.
Angelo Gordon’s Dallas history and growth
Founded in 1988, Angelo Gordon is a fully integrated and scaled multi-strategy platform with more than 650 employees across 12 offices in the U.S., Europe, and Asia.
Angelo Gordon has a real estate investment history in Dallas.
Last year, it was part of the partnership that acquired the former Richards Group tower on North Central Expressway north of downtown Dallas.
Its $55 billion credit platform offers scaled and diversified capabilities across the credit investing spectrum, including corporate credit, direct lending, and structured credit, and its $18 billion real estate platform manages dedicated value-add real estate strategies with significant reach in the U.S., Europe, and Asia, as well as a net lease strategy.
Angelo Gordon has delivered significant and sustained momentum and growth, doubling its AUM over the past five years.
Better together with diversified platform
TPG and Angelo Gordon had a combined AUM of $208 billion as of Dec. 31.
At closing, TPG said it will manage assets across a broadly diversified set of investment strategies, including private equity, impact, credit, real estate, and market solutions. The company said the addition of Angelo Gordon marks a significant expansion into credit investing for TPG, establishing additional levers to drive organic growth and further expanding the breadth, diversification, and reach of its platform.
TPG said the transaction will enable it and Angelo Gordon to be an even stronger partner to LPs, providing investment opportunities across a broader range of asset classes and return profiles.
“This is a terrific partnership that provides Angelo Gordon with the scale to capitalize on the growing opportunity set we see in the credit and real estate markets, the diversification to create new solutions for our clients across the risk spectrum in all market conditions, and the opportunity to share our collective expertise, insights, and knowledge,” Josh Baumgarten, Angelo Gordon co-CEO and head of credit, said in a statement.
Adam Schwartz, co-CEO and head of real estate at Angelo Gordon, said the deal shows the strength of the firm’s team.
“We’re proud to be joining a world-class investment platform that shares our philosophy on firm culture, investment excellence, and delivering for clients,” Schwartz said. “This transaction is a testament to the team and business that we have built over nearly 35 years, and we are excited about the new and expanded opportunities ahead for our employees and LPs.”
“Both firms have grown organically over the past three decades, from private founder-led businesses into seasoned firms with next-generation executive leadership poised to accelerate further growth as part of a diversified platform,” Jim Coulter, TPG’s co-founder and executive chairman, added in a statement. “There is a clear alignment of interests, values, and culture with a focus on entrepreneurship, innovation, and investment excellence.”
TPG said that Angelo Gordon’s platform offers scaled and diversified capabilities across the credit investing spectrum, including corporate credit and special situations, direct lending, and structured credit.
Each product area is well established with strong investment performance and substantial opportunities for significant organic growth, TPG said.
Expanding TPG’s reach in Europe and Asia
The acquisition further expands TPG’s geographic reach in Europe and Asia, broadens sourcing capabilities, and adds additional strategies, including a net lease strategy. The company said that on a combined basis, TPG will have meaningful scale with $38 billion of collective AUM in real estate across TPG and Angelo Gordon as of Dec. 31.
The deal also creates an even more compelling partner for the largest LPs globally, expanding alternative investment opportunities across a broad range of asset classes and return profiles that offer solutions for high growth channels such as insurance, high net worth, and retail, as well as institutional clients.
Angelo Gordon brings an attractive and complementary base of long-standing clients across its credit and real estate businesses, TPG said.
The combined company will benefit from shared intellectual capital, including industry, sector, and investing expertise, broadened LP relationships and distribution channels, and the support of robust infrastructure to drive enhanced opportunities for growth, business expansion, new product development, and geographic reach.
Just last month, TPG announced that it had secured $3.4 billion of equity commitments for TTAD II and related vehicles.
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