TPG, an alternative investment management firm headquartered in Fort Worth and San Francisco, announced an agreement Monday to acquire alternative investment firm Angelo Gordon.
New York-based Angelo Gordon is a privately-held, $73 billion firm focused on credit and real estate investment.
TPG will acquire Angelo Gordon through a cash and equity transaction valued at approximately $2.7 billion, including an estimated $970 million in cash and up to 62.5 million common units of the TPG Operating Group and TPG restricted stock units.
The transaction also includes an earn-out based on Angelo Gordon’s future financial performance, valued at up to $400 million.
Founded in 1988, Angelo Gordon has produced significant and growth and momentum, doubling its assets under management during the the past five years. The company operates 12 offices in the U.S. and abroad and has 650 employees.
TPG and Angelo Gordon had combined assets under management of $208 billion as of December 31, 2022, according to a statement announcing the acquisition.
Founded in 1992, TPG (NASDAQ:TPG) went public with an IPO in January 2022. Originally known as Texas Pacific Group, the firm was founded by James Coulter and David Bonderman, who were alumni of the Robert M. Bass Group, a private equity firm.
The planned merger will enable TPG to broaden its investment ability and extend its reach to new areas, managing assets across diversified investment platforms, including private equity, impact, credit, real estate, and market solutions.
The addition of Angelo Gordon marks a significant expansion into credit investing, officials stated.
“The addition of Angelo Gordon underscores our continued focus on growing and scaling through diversification, while driving long-term value for our shareholders,” Jon Winkelried, CEO of TPG, said in a statement.
“This is a terrific partnership that provides Angelo Gordon with the scale to capitalize on the growing opportunity set we see in the credit and real estate markets, the diversification to create new solutions for our clients across the risk spectrum in all market conditions, and the opportunity to share our collective expertise, insights, and knowledge,” said Josh Baumgarten, Angelo Gordon co-CEO and head of credit.
“Both firms have grown organically over the past three decades, from private founder-led businesses into seasoned firms with next-generation executive leadership poised to accelerate further growth as part of a diversified platform,” stated Coulter, executive chairman of TPG. “There is a clear alignment of interests, values, and culture with a focus on entrepreneurship, innovation, and investment excellence.”