Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Retirement Income Conference
    • 2022 Managing Pension Risk & Liabilities
    • 2022 WorldPensionSummit
Breadcrumb
  1. Home
  2. ALTERNATIVES
January 29, 2020 04:00 PM

TPG, TPG Sixth Street Partners negotiating a separation

Arleen Jacobius
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Getty Images

    TPG and its $33 billion private credit arm, TPG Sixth Street Partners, are negotiating a split in which the credit business will buy back a portion of TPG's minority stake in the business, said sources with knowledge of the situation.

    "Over the past year or so, we (TSSP and TPG) have had a series of good discussions about what that next evolution should look like," according to a letter TPG Sixth Street Partners sent to limited partners that was obtained by Pensions & Investments. "Together, we have decided now is the right time to pursue our respective next phases as independent organizations."

    Any agreement would include a multiyear period to transition the limited services TPG and TSSP currently share. TSSP will provide more information when the agreement is finalized, said TSSP's letter, which was signed by Brian D'Arcy, a TSSP partner who leads TPG Sixth Street's capital formation team.

    TPG said TPG executives do not expect the separation of TPG and TSSP into independent businesses would impact its funds or its investors "given our businesses operate mostly autonomously today," said a separate letter TPG sent to limited partners signed by James "Jim" Coulter, co-CEO and a founding partner of TPG, and Jon Winkelried, co-CEO and a partner at TPG, that was also obtained by P&I..

    However, TPG's letter leaves room for future collaboration after the companies separate.

    "We expect and intend to continue to look for ways to collaborate and work together when opportunities arise," the TPG letter said.

    The two firms notified clients Tuesday.

    Executives at both organizations wish to be free of current restrictions on the types of transactions in which they can invest, said sources familiar with the negotiations. The terms of any agreement, which is yet to be finalized, would bar each firm from investing in each other's focus areas for 12 months, the sources said.

    TSSP spokesman Patrick Clifford and TPG spokesman Luke Barrett declined to comment.

    TSSP was formed in 2009 to capitalize on liquid and illiquid credit dislocations and other special situations on a dynamic basis across various economic cycles, according to information on the website of the New Jersey Division of Investment, which makes investments for the $78.5 billion New Jersey Pension Fund, Trenton, a TSSP investor.

    Until around 2011 when TSSP, then known as TPG Opportunities Partners, began raising its own funds and separate accounts, the firm invested capital through separately audited entities primarily within TPG Partners VI, and TPG Financial Partners funds.

    In 2017, TSSP sold a 10% stake to Dyal Capital Partners, a Neuberger Berman business. At the time, TSSP managed about $20 billion in assets. More recently, in October 2019, TSSP closed its first growth fund, TSSP Capital Solutions fund, at its $2.2 billion hard cap. The fund makes both credit and equity investments of between $25 million and more than $500 million in growth companies.

    TPG is expected to maintain a minority interest in TSSP and discontinue including TSSP assets as part of TPG's AUM should a transaction be finalized.

    Related Articles
    TPG closes technology growth equity fund at $1.6 billion
    TPG closes latest real estate fund at $3.7 billion
    TPG Sixth Street Partners closes late-stage growth fund at $2.2 billion
    Recommended for You
    H.I.G. Capital names head of U.S. private equity business development
    mark_carney_feb_2020_1550-main_i.jpg
    Brookfield names leaders of soon-to-be spun off asset management unit
    Barings to acquire Sydney-based Altis Property Partners
    Barings to acquire Sydney-based Altis Property Partners
    Private Markets
    Sponsored Content: Private Markets

    Reader Poll

    August 10, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Gaining Momentum: Where Next for Trend-Following?
    The market opportunity in U.S. residential mortgage-backed securities
    Credit Indices Evolve with Enhanced Data Inputs
    Hedge Funds 2.0: Back to the future
    How Has 2022's Carnage Reshaped Global Stock and Bond Markets?
    Crossroads: Politics, Inflation, & Bonds
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    August 1, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Retirement Income Conference
      • 2022 Managing Pension Risk & Liabilities
      • 2022 WorldPensionSummit