Private equity firm TPG to buy Angelo Gordon in deal valued at $2.7 billion
2023.05.15 07:26
© Reuters.
(Reuters) -U.S. private equity firm TPG Inc will buy Angelo Gordon, an investment company with focus on credit and real estate markets, in a deal valued at $2.7 billion, the companies said on Monday.
The deal will allow TPG to expand into credit investing since splitting from its credit arm Sixth Street in 2020 and provide Angelo Gordon with the scale to capitalize on the credit and real estate markets.
Upon the close of the transaction, TPG will manage assets across private equity, credit, real estate and market solutions, while Angelo Gordon will become a new investing platform within TPG.
“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,” said Josh Baumgarten, co-chief executive officer of Angelo Gordon.
The cash portion of the transaction will be funded from TPG’s current cash balance and undrawn revolver.
Baumgarten and Adam Schwartz, another CEO of Angelo Gordon, will become co-managing partners of the platform, reporting to TPG CEO Jon Winkelried.
Angelo Gordon has about 650 employees around the globe, according to its website.
TPG and Angelo Gordon had combined assets under management of $208 billion as of Dec. 31.
The transaction is expected to close in the fourth quarter of 2023.
