TPG To Acquire Angelo Gordon For $2.7B

UPDATE, MAY 15, 10:39 A.M. ET: TPG has entered a definitive agreement to purchase Angelo Gordon for $2.7B, larger than previously reported, according to a press release from the companies.

TPG Inc. is considering the purchase of investment firm Angelo Gordon for about $2B, according to people close to the matter, as reported by Bloomberg Friday.

Angelo Gordon is a privately held alternative investment firm that manages about $53B and invests in credit and real estate markets, according to its website. It has about 650 employees.

TPG separated from its credit arm Sixth Street in 2020, so an acquisition of Angelo Gordon would re-enter it into the credit investing space.

TPG CEO Jon Winkelried has expressed a desire to get back into credit investing and diversify and strengthen its business since it split from Sixth Street, which was founded in 2009 by a group of former Goldman Sachs Group executives led by Alan Waxman, according to Bloomberg.

“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,” Winkelreid said on an earnings call last year, according to Bloomberg. “We feel it has a lot of value to us.”

TPG has $135B in assets under management, including $20B in real estate assets, according to its website. Real estate is the third-largest of TPG’s five main investment platforms, three of which include private equity investing. It has about 1,100 employees.

The private equity firm has significantly upped its real estate investments since going public in January 2022, when it had $11.5B worth of real estate assets under management.