TPG to double real estate AUM with Angelo Gordon purchase

TPG to double real estate AUM with Angelo Gordon purchase

Global alternative asset management firm TPG has agreed to acquire Angelo Gordon, a $73bn alternative investment firm focused on credit and real estate investing, for $2.7 billion.

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’s $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.

TPG has $19 billion of assets under management in real estate as of December 31, 2022.

TPG expects to expand its geographic reach in Europe and Asia, broaden sourcing capabilities, and adds additional strategies, including a net lease strategy.

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 December 31, 2022.

Upon the close of the transaction, TPG will manage assets across a broadly diversified set of investment strategies, including private equity, impact, credit, real estate, and market solutions.

Upon closing of the transaction, Angelo Gordon will become a new significant investing platform within TPG. Angelo Gordon’s Co-CEOs Josh Baumgarten and Adam Schwartz will become Co-Managing Partners of the platform, reporting to TPG CEO, Jon Winkelried.

TPG and Angelo Gordon had a combined AUM of $208 billion1 as of December 31, 2022.

“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,” said Jon Winkelried, Chief Executive Officer of 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, 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,” said Josh Baumgarten, Angelo Gordon Co-CEO and Head of Credit.

The transaction is expected to close in Q4 2023.

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