Sixth Street Buys Out Last Bit of TPG’s Stake in $1B Deal
By Mark Hallum September 3, 2024 4:07 pm
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TPG has sold back the last of its 10 percent stake in global investment firm Sixth Street for about $1 billion, formally ending the two firms’ long-standing partnership.
TPG, which was part of the founding of Sixth Street in 2009, has slowly grown apart from its credit partner over the years, reducing its stake from 30 percent in 2020 in a deal which made the two affiliates independent entities.
The buyout by Sixth Street is the product of a clause in the 2020 deal that allowed Sixth Street to buy back TPG’s shares in the company if TPG ever got back into the credit business, according to a source. TPG’s purchase of investment manager Angelo Gordon for $2.7 billion in October 2023 allowed Sixth Street to exercise that option.
Sixth Street declined to comment while TPG did not immediately respond to a request for comment.
News website Semafor first reported the buyout on Tuesday morning.
Now Sixth Street, with $75 billion in assets under management, is completely free from TPG, which for a time owned two competing lending platforms. Sixth Street can now focus on catching up with the likes of Blackstone and Apollo Global Management.
A large amount of those assets are of the real estate variety, but it’s unclear just how much.
Sixth Street has grown rapidly since 2020 when it had $34 billion in assets under management, something that was apparent to both companies with concerns of potential overlap in services offered to clients, Sixth Street said at the time.
Update: The story has been updated to clarify the purchase price was $1 billion.
Mark Hallum can be reached at mhallum@commercialobserver.com.
