Global alternative asset management firm TPG is acquiring US private equity firm Angelo Gordon in a cash and equity transaction worth $2.7 bn (€2.5 bn).
The deal includes about $970 mln (€891 mln) in cash and up to 62.5 mln common units of the TPG Operating Group and restricted stock units of TPG, as well as an earnout based on Angelo Gordon’s future financial performance, of up to $400 mln (€368 mln).
Based in New York, Angelo Gordon is focused on credit and real estate markets, with over 650 employees across 12 offices in the US, Europe and Asia.
The firm disposes of a $55 bn (€50 bn) credit platform offering corporate credit, direct lending, and structured credit, as well as an $18 bn (€16 bn) real estate platform.
Angelo Gordon has been investing in real estate in Europe since 2009, acquiring over $6 bn (€5.5 bn) of properties, mainly in major cities in the UK and Western Europe, with staff in London, Amsterdam, Frankfurt, and Milan.
The company typically works with 50 local operating partners to source assets, correct the underperformance and add significant value to assets from owners who lack the capital, patience or expertise to improve cash flow and value.
Additionally, it will leverage relationships with banks, loan servicers, bankruptcy liquidators and owners to acquire many properties in a privately negotiated process.
There will be no change to how Angelo Gordon invests and manage client capital as a result of the transaction, the firm said. AG’s portfolio managers and their teams will remain in place and focused on investing capital with the same opportunistic approach.
TPG and Angelo Gordon had $208 bn (€191 mln) of combined assets under management of as of 31 December 2022.
Upon closing in Q4 2023, Angelo Gordon will become a new investing platform within TPG, offering diversification in credit investing, including corporate credit, direct lending and structured credit.
TPG will manage diversified assets, including private equity, impact, credit, real estate, and market solutions.
Angelo Gordon’s co-CEOs, Josh Baumgarten and Adam Schwartz, will become co-managing partners of the platform, reporting to TPG CEO Jon Winkelried.
Ardea Partners was lead financial adviser to TPG, while Goldman Sachs and Piper Sandler advised Angelo Gordon.
