TPG buys Angelo Gordon
Thoughts on this acquisition, is it a sign MF are allocating more dry powder into Credit? Do you think other MF/UMM will follow suit?
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There's broad consensus that private credit is the asset class to be in. PE cannot deploy and cannot fundraise at these rates. See Bain&Co report, Howard Marks FT article, Apollo and KKR's AuM breakdowns, BLK which just made PC a standalone business, just to name a few.
TPG had to let go the credit business a couple of years ago and before that they built Castlelake in 2013 so they know the asset class. See the IP PowerPoint Presentation (tpg.com) and in particular p7
what is the integration process like for this acquisition- will it be like TPG Sixth Street Partners (TSSP) where they operate under their own name, or will it be AG being absorbed into TPG
Kind of irrelevant. Asset classes are so complimentary that it does not matter what name they have on the door. I don't think public disclosure specifies it but Gordon will be out of the business o would make sense to fully integrate. Again I don't know for certain.
I think this is really more of TPG playing catch-up in credit relative to other US MF. Consolidation and expansion of distribution into pools of capital like insurance and HNW/RIA channels will continue to be themes for alternative asset managers.
Agree with the above comments about TPG catching up. If you look at their closest peers you'll see that the likes of KKR, BX, Apollo, Bain, and others have built alternative asset management businesses no longer reliant on private equity to drive fundraising - compare the AUM and you'll see. If you look at the alternative assets space you can clearly see product proliferation on which TPG lags behind. In 2010, among the top 10 GPs, there were on average 2 product families offered. This has risen to 7 by 2020. Nowadays non-flagship funds account for the largest percentage of fundraising in history. TPG's bread and butter is buyouts and growth. They have seemingly neglected the rapid growth in other asset classes and are now probably trying to add a credit business.
This ⬆️
what does this mean for current employees of angelo gordon
Also what does this mean for current employees of Twin Brook? Thats the fastest growing business within Anglo Gordon
They'll probably keep twinbrook walled off.
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