TPG Inc., a global alternative asset management firm, announced that it agreed to acquire Angelo Gordon, a $73 billion alternative investment firm focused on credit and real estate investing.
The cash and equity transaction is valued at approximately $2.7 billion and includes $970 million in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG.
Additionally, there is an earnout component based on Angelo Gordon’s future financial performance, valued at up to $400 million.
Founded in 1988, Angelo Gordon is a fully integrated multi-strategy platform with over 650 employees across 12 offices worldwide.
With a $55 billion credit platform and an $18 billion real estate platform, Angelo Gordon has experienced significant growth, doubling its assets under management (AUM) in the past five years.
The combined AUM of TPG and Angelo Gordon stood at $208 billion as of December 31, 2022.
The acquisition will enable TPG to expand its investment strategies, including private equity, impact, credit, real estate, and market solutions. It marks a significant entry into credit investing for TPG, offering opportunities for organic growth and diversification.
The transaction strengthens TPG’s position as a partner to limited partners (LPs), providing a broader range of investment opportunities across various asset classes and return profiles.
TPG will also benefit from Angelo Gordon’s established credit and real estate businesses, expanding its geographic reach and sourcing capabilities.
TPG’s CEO, Jon Winkelried, expressed enthusiasm about the acquisition, emphasizing the strategic fit and the potential for long-term value creation for shareholders.
Angelo Gordon’s Co-CEOs, Josh Baumgarten and Adam Schwartz, highlighted the partnership’s benefits, including access to a larger investment platform, enhanced diversification, and the opportunity to share expertise.
The transaction brings together two firms with aligned values, culture, and a shared focus on entrepreneurship and investment excellence. With their combined resources and expertise, TPG and Angelo Gordon aim to drive further growth, develop new products, and strengthen relationships with clients across platforms.
The acquisition is subject to customary closing conditions, including regulatory approvals and consents, and is expected to be completed in the fourth quarter of 2023.
Upon closing, Angelo Gordon will become a significant investing platform within TPG, with Josh Baumgarten and Adam Schwartz serving as Co-Managing Partners.
The transaction is expected to be accretive to TPG shareholders in 2024, before any revenue or cost synergies are realized. – BusinessNewsAsia.com