SAN FRANCISCO & FORT WORTH, Texas–(BUSINESS WIRE)–TPG Inc. (NASDAQ: TPG), a leading global alternative asset management firm, today announced the successful completion of its previously announced acquisition of Angelo Gordon. The transaction follows the completion of customary closing conditions, including HSR, international regulatory approvals, and other client and third-party consents.
With the completion of the transaction, TPG’s investing platforms span a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions. Moving forward, Angelo Gordon will operate as TPG Angelo Gordon, a $74 billion[1] diversified credit and real estate investing platform within TPG. Across all platforms, TPG manages $213 billion[2] of AUM.
“This is a milestone transaction for TPG, representing an important step in our continued evolution as a diversified global alternative asset manager,” said Jon Winkelried, Chief Executive Officer of TPG. “As we continue to operate and invest in dynamic markets, the addition of Angelo Gordon expands our capabilities and creates highly compelling investment opportunities. We approach today’s market from a position of strength with best-in-class talent, deep, sector-driven expertise, and broad flexibility to provide solutions for portfolio companies, clients, and shareholders. Moving forward, TPG expects to continue to deliver excellent performance, build an inclusive and diverse culture, and accelerate growth through new and existing strategies.”
“We have seen the power of our collective organizations – the capabilities of our people, and the depth of our relationships and knowledge – and are thrilled to be part of TPG,” said Josh Baumgarten and Adam Schwartz, Co-Managing Partners of TPG Angelo Gordon. “The teams across both firms have invested a tremendous amount of time getting to know one another and identifying the best ways to combine our respective skills and expertise. We have already started working together on opportunities resulting from our partnership and look forward to this next chapter.”
Strategic Benefits of the Transaction
- Marks a significant expansion into credit investing for TPG and delivers real estate capabilities that are complementary to the firm’s current strategies.
- Provides a broader spectrum of alternatives solutions for clients, creating an even more compelling partner for the largest LPs globally.
- Expands our client base, adding more than 350 attractive and complementary institutional LP relationships.
- Unlocks significant opportunities to grow revenue and optimize and scale, with benefits from shared intellectual capital and the support of a robust global infrastructure.
- Enhances capital formation capabilities.
Summary of Key Terms
- 53.0 million common units of the TPG Operating Group, subject to certain adjustments;
- 8.4 million restricted stock units of TPG, subject to certain adjustments;
- Approximately $730 million in cash;
- Rights to an aggregate cash holdback amount of up to $150 million; and
- An earnout based on TPG Angelo Gordon’s future financial performance, valued at up to $400 million.
Advisors
Ardea Partners LP acted as lead financial advisor to TPG. J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC also acted as financial advisors to TPG. Weil, Gotshal & Manges LLP served as TPG’s lead transaction counsel. Davis Polk & Wardwell LLP, Shearman & Sterling LLP, and Cleary Gottlieb Steen & Hamilton LLP advised TPG with respect to tax, executive compensation, and investment fund matters, respectively. Goldman Sachs & Co. LLC and Piper Sandler acted as financial advisor to Angelo Gordon and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel.
About TPG
TPG (Nasdaq: TPG) is a leading global alternative asset management firm, founded in San Francisco in 1992, with $213 billion[2] of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com.
