Twin Brook Capital Partners (Twin Brook), the middle-market direct lending subsidiary of Angelo, Gordon & Co, has held the final close of AG Direct Lending Fund II with total capital commitments of USD1.6 billion, exceeding the Fund’s target by USD600 million.
Total equity capital raised for this second fund when including separately managed accounts exceeds USD2.3 billion.
AG Direct Lending Fund II will seek to capitalise on the long-term investment opportunities in middle-market direct lending by sourcing, underwriting, and actively managing a diversified portfolio of middle market, floating rate, senior secured loans with a focus on first lien secured debt. The Fund will target senior financing opportunities up to USD200 million with hold sizes across the Twin Brook platform ranging from USD25 million up to USD100 million. The Fund’s flexible product suite and customised financing solutions will also allow for opportunistic investments in second liens, mezzanine, unitranche and equity co-investments.
Trevor Clark and Chris Williams, Co-Heads of Twin Brook, says: “We are pleased with the strong reception that our second fund received from both new and returning limited partners, allowing us to close the Fund well above our target. With USD4 billion of buying power and over USD5.6 billion of total committed capital, we are well positioned to continue to serve our borrowers and private equity clients investing in the U.S. middle market. Our highly experienced team, deep focus on the lower end of the middle market and differentiated platform have generated a strong pipeline of opportunities, and we are excited to put this fresh capital to work.”
Twin Brook focuses on loans to private equity-owned companies with EBITDA between USD3 million and USD50 million, with an emphasis on companies with USD25 million of EBITDA and below. Since inception in the fourth quarter of 2014, Twin Brook has closed 110 transactions and provided total arranged commitments of over USD3.2 billion.
