TPG will purchase Angelo Gordon, an alternative investment business focused on credit and real estate investing, for about $2.7 billion in cash and equity.
This is based on TPG’s share price on May 12, 2023, and contains a estimated $970 million in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG, in each case, subject to certain adjustments.
In addition, the deal includes a earnout based on Angelo Gordon’s future financial performance, valued at up to $400 million.
The transaction is expected to be completed in the fourth quarter of 2023. TPG Shareholders are expected to benefit from the transaction in terms of fee-related earnings (FRE) and after-tax distributable earnings per share in 2024.
TPG also reported first-quarter earnings of $0.24 per share of Class A common stock, falling short of analysts’ expectations of $0.33 per share.
The company reported fee-related earnings of $99 million in the first quarter, with revenues of $311.5 million, up 14.1% year on year and exceeding consensus projections of $279.31 million.
Founded in 1988, Angelo Gordon is a fully integrated and scaled multi-strategy platform with more than 650 employees across 12 offices in the U.S., Europe, and Asia. Angelo Gordon’s $55 billion1,2 credit platform offers scaled and diversified capabilities across the credit investing spectrum, including corporate credit, direct lending, and structured credit, and its $18 billion1,2 real estate platform manages dedicated value-add real estate strategies with significant reach in the U.S., Europe, and Asia, as well as a net lease strategy. Similar to TPG, Angelo Gordon has delivered significant and sustained momentum and growth, doubling its AUM over the past five years.
