Cleary Gottlieb is representing TPG Inc. (TPG), a leading global alternative asset management firm, on investment fund matters in connection with a definitive agreement under which TPG will acquire Angelo Gordon, a $73 billion alternative investment firm focused on credit and real estate investing, in a cash and equity transaction valued at approximately $2.7 billion, based on TPG’s share price as of May 12, 2023, including an 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.
The transaction also includes an earnout based on Angelo Gordon’s future financial performance, valued at up to $400 million.
TPG and Angelo Gordon had a combined AUM of $208 billion as of December 31, 2022. Upon the close of the transaction, TPG will manage assets across a broadly diversified set of investment strategies, including private equity, impact, credit, real estate, and market solutions. The addition of Angelo Gordon marks a significant expansion into credit investing for TPG, establishing additional levers to drive organic growth and further expanding the breadth, diversification, and reach of the TPG platform. The transaction will enable TPG and Angelo Gordon to be an even stronger partner to LPs, providing investment opportunities across a broader range of asset classes and return profiles.
For more information, please see the press release here.