TPG to acquire alt investment firm Angelo Gordon in $2.7bn deal

TPG Inc. has announced its plan to acquire Angelo Gordon, a $73 billion alternative investment firm specializing in credit and real estate investing, in a cash and equity transaction valued at approximately $2.7 billion.

The deal is based on TPG Inc.’s share price as of May 12, 2023, and includes an estimated $970 million in cash, up to 62.5 million common units of the TPG Operating Group, and restricted stock units of TPG, subject to adjustments.

The transaction also features an earnout valued at up to $400 million, contingent on Angelo Gordon’s future financial performance.

Angelo Gordon, established in 1988, boasts a diversified credit platform worth $55 billion and a $18 billion real estate platform.

The company has experienced significant growth in recent years, doubling its assets under management (AUM) over the past five years. The combined AUM of TPG and Angelo Gordon reached $208 billion as of December 31, 2022.

The acquisition of Angelo Gordon represents a major expansion into credit investing for TPG, offering additional avenues for organic growth and broadening the firm’s reach.

The deal is expected to provide both companies’ limited partners with a wider range of investment opportunities across various asset classes and return profiles.

TPG CEO Jon Winkelried emphasized the strategic nature of the transaction, stating that it will enhance the firm’s investing capabilities and product offerings.

Josh Baumgarten, Angelo Gordon Co-CEO and Head of Credit, lauded the partnership as an opportunity to capitalize on the growing potential in credit and real estate markets.

Adam Schwartz, Co-CEO and Head of Real Estate at Angelo Gordon, also expressed excitement for the new opportunities this partnership will provide.

Jim Coulter, TPG’s Co-Founder and Executive Chairman, highlighted the alignment of interests, values, and culture between the two firms, emphasizing their shared commitment to entrepreneurship, innovation, and investment excellence. –

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