TPG has closed more than $6.2bn for its third Credit Solutions Fund, surpassing an initial $4.5bn target as investors back the firm’s push into privately negotiated debt deals amid a wave of upcoming maturities and elevated financing costs, according to a report by Bloomberg.
The vehicle, managed by TPG Credit, is twice the size of its predecessor. The strategy will focus on originating bespoke financings for public and private companies, including private equity–backed businesses, according to Ryan Mollett, TPG’s global head of credit solutions.
Mollett told Bloomberg that demand for private credit solutions is accelerating as borrowers look for flexible structures to manage refinancing risks. TPG expects to lend against specific assets, business carve-outs and unencumbered collateral, with coupons typically ranging from the high single digits to low double digits.
TPG, which manages about $286bn, said the current backdrop — driven by higher debt costs, limited access to traditional capital markets and a substantial maturity wall — is creating a multi-year opportunity for the strategy. Recent transactions include a $1bn term loan to Altice USA, arranged alongside Goldman Sachs, and an investment in Elon Musk’s xAI.
The credit-focused approach is also generating strong interest from limited partners seeking co-investments. Mollett said larger allocators are increasingly looking to partner on deal origination at scale.
