Mid-market direct lender TPG Twin Brook Capital Companions and secondaries supervisor Coller Capital have closed a $3bn (£2.2bn) deal for a continuation fund, which is regarded as the biggest transaction of its sort so far within the personal credit score secondaries market.
Continuation funds allow personal credit score managers to roll over an present portfolio of property into a brand new fund, offering some liquidity for present buyers whereas enabling managers to retain management of the property.
TPG Twin Brook’s automobile consists of floating-rate, senior secured, sponsor-backed loans from its 2016 and 2018 classic funds. Its goal is to offer present buyers with a sexy liquidity possibility, and to supply new buyers entry to a diversified and high-quality pool of personal credit score property.
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“We appreciated the chance to work carefully with TPG Twin Brook to design an answer that delivered on a number of priorities: liquidity, alignment, and long-term capital,” mentioned Jonathan Leu, principal at Coller Capital.
“The robust assist we acquired validates our versatile, solutions-based strategy, and we sit up for persevering with to handle these loans by the following part of their lifecycle,” mentioned Trevor Clark, founder and managing accomplice of TPG Twin Brook.
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The corporations say the deal additionally displays rising institutional demand for credit score secondaries, with transaction quantity rising because the broader personal credit score market continues to mature and broaden.
Campbell Lutyens served as monetary adviser on the transaction and Deutsche Financial institution offered financing for the transaction. Authorized counsel for Coller Capital was offered by Debevoise & Plimpton, whereas Ropes & Grey acted for TPG Twin Brook.
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