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TPG to acquire Angelo Gordon in $2.7bn deal

TPG Inc, a global alternative asset management firm, is to acquire Angelo Gordon, a $73 billion alternative investment firm focused on credit and real estate investing, in a cash and equity transaction valued at approximately $2.7 billion, based on TPG Inc’s share price as of 12 May, 2023.

TPG Inc, a global alternative asset management firm, is to acquire Angelo Gordon, a $73 billion alternative investment firm focused on credit and real estate investing, in a cash and equity transaction valued at approximately $2.7 billion, based on TPG Inc’s share price as of 12 May, 2023.

The agreement includes an estimated $970 million cash payment and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG, in each case, subject to certain adjustments. The transaction also includes an earnout based on Angelo Gordon’s future financial performance, valued at up to $400 million.

Founded in 1988, Angelo Gordon is a fully integrated and scaled multi-strategy platform with more than 650 employees across 12 offices in the US, Europe, and Asia. Angelo Gordon’s $55 billion credit platform offers scaled and diversified capabilities across the credit investing spectrum, including corporate credit, direct lending, and structured credit, and its $18 billion real estate platform manages dedicated value-add real estate strategies with significant reach in the US, Europe, and Asia, as well as a net lease strategy. 

TPG and Angelo Gordon had a combined AUM of $208 billion as of 31 December, 2022. Upon the close of the transaction, TPG will manage assets across a broadly diversified set of investment strategies, including private equity, impact, credit, real estate, and market solutions. The addition of Angelo Gordon marks a significant expansion into credit investing for TPG.

The transaction is subject to customary closing conditions, including HSR, international regulatory approvals, and other client and third-party consents. The transaction, which was unanimously approved by the TPG Board of Directors, is expected to close in Q4 2023.

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