TPG - Mon, 02/19/2024 - 16:25

TPG INSIGHTS - Private Credit: Opportunity & Innovation

TPG Angelo Gordon

The rapid rise of private credit has been nothing short of astonishing. More than a decade in the making, the seismic forces contributing to private credit’s ascent, including pricey public market valuations, investors’ desire for structure and control, and continued bank deleveraging, only look set to deepen ahead. Add to that the prospect of structurally higher interest rates, and we believe private credit is poised to play an outsized role in portfolios and the market in the coming years. With this in mind, we sit down with Josh Baumgarten, Co-Managing Partner & Head of Credit at TPG Angelo Gordon, and Amanda Lynam, Head of Macro Credit Research at BlackRock, to discuss the outlook for public and private credit in 2024, what’s driving private credit AUM growth, and the portfolio benefits of private credit allocations. Both Baumgarten and Lynam agree that credit markets have yet to fully adjust to the higher cost of capital, but they see more room to run for private credit AUM. Lynam, for her part, believes her forecast for $3.5T in global private credit AUM by 2028—from around $1.7T today—is achievable considering the asset class’s historical growth and relative size. We then turn to Trevor Clark, Founder of TPG AG’s middle market direct lending business, TPG Twin Brook, T.J. Durkin, Head of TPG AG’s Credit & Specialty Finance business, and Ryan Mollett, TPG AG’s Global Head of Credit Solutions, for deeper discussions on what they see as the biggest pockets of opportunity and innovation in private credit today.

Download PDF

Share this post

Sign Up Now for Full Access to Articles and Podcasts!

Unlock full access to our vast content library by registering as an institutional investor

Register

Contacts


TPG

TPG is a leading global alternative asset manager with $239 billion in assets under management. Jim Coulter and David Bonderman, former colleagues at the Bass Family Office, created TPG in 1992 and opened the firm's first offices in San Francisco. Today, TPG is led by CEO Jon Winkelried, who became sole CEO in 2021 after serving as Co-CEO since 2015.

A Unique Perspective    
With our family office roots, entrepreneurial heritage, and West Coast base, TPG has developed a distinctive approach to alternative investments based on innovation-led growth, an affinity for disruption and technology, and a distinctive culture of openness and collaboration.

Innovation and Organic Growth   
Our principled focus on innovation has resulted in a disciplined, organic evolution of our business. Incubating, launching, and scaling new platforms and products organically—often early in the development of important industry trends—is embedded in our DNA. Over 30 years, we have developed an ecosystem of insight, engagement, and collaboration across our platforms and products, which currently include more than 300 active portfolio companies headquartered in more than 30 countries. With an extensive track record, a diversified set of investment strategies, and a strategic orientation towards areas of high growth, such as technology, healthcare, and impact, we are helping shape the future of alternative asset management.

Strategic Acquisition   
In 2023, TPG acquired Angelo Gordon, marking a significant expansion into credit investing and offering real estate capabilities that are complementary to our current strategies. This strategic transaction meaningfully expanded our investing capabilities and broadens our product offering, underscoring our continued focus on growing and scaling through diversification.   
 

Matt Heintz   
Co-Head of Insurance   
mheintz@tpg.com   
(312) 779-8957

www.tpg.com   
245 Park Avenue   
New York, NY 10167

View the contributor page

Sign Up Now for Full Access to Articles and Podcasts!

Unlock full access to our vast content library by registering as an institutional investor .

Create an account

Already have an account ? Sign in

Ѐ Ё Ђ Ѓ Є Ѕ І Ї Ј Љ Њ Ћ Ќ Ѝ Ў Џ А Б В Г Д Е Ж З И Й К Л М Н О П Р С ΄ ΅ Ά · Έ Ή Ί Ό Ύ Ώ ΐ Α Β Γ Δ Ε Ζ Η Θ Ι Κ Λ Μ Ν Ξ Ο Π Ρ Ё Ђ Ѓ Є Ѕ І Ї Ј Љ Њ Ћ Ќ Ў Џ А Б В Г Д Е Ж З И Й К Л М Н О П Р С Т У Ф Х Ц Ч Ш Ā ā Ă ă Ą ą Ć ć Ĉ ĉ Ċ ċ Č č Ď ď Đ đ Ē ē Ĕ ĕ Ė fi fl œ æ ß