TPG Inc. is in talks to acquire investment firm Angelo Gordon, which would be its first major foray into credit investing since separating from Sixth Street three years ago, according to people with knowledge of the matter.
(Bloomberg) — TPG Inc. is in talks to acquire investment firm Angelo Gordon, which would be its first major foray into credit investing since separating from Sixth Street three years ago, according to people with knowledge of the matter.
A deal, which would value Angelo Gordon at more than $2 billion, hasn’t been finalized and the discussions may not ultimately lead to a transaction, said the people, who asked not to be identified because they aren’t authorized to speak publicly. TPG has $135 billion under management.
A TPG spokesperson declined to comment. A representative for Angelo Gordon didn’t immediately provide comment.
TPG split in 2020 from its credit arm Sixth Street, which was founded in 2009 by a group of former Goldman Sachs Group Inc. executives led by Alan Waxman. Since then, TPG Chief Executive Officer Jon Winkelried has pushed to get back into credit investing to diversify and strengthen its business, which is mostly focused on private equity and real estate.
“It’s important and a priority of ours to try to continue to add a credit strategy, a broader credit strategy to our platform over time,” he said on an earnings call last year. “We feel it has a lot of value to us.”
Other alternative asset managers have made credit-related wagers in recent years including Carlyle Group Inc., which last year acquired a portfolio of assets from CBAM Partners. In 2021, T Rowe. Price bought Oak Hill Advisors, and in 2019, Brookfield Corp. took a majority stake in Oaktree.
Angelo Gordon, which has around $53 billion of assets under management mostly in credit and real estate, is run by Josh Baumgarten and Adam Schwartz. The firm has about 650 employees around the globe, according to its website.
(Updates with valuation in second paragraph and other acquisitions in sixth.)
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