Maksim Labkouski
- TPG (NASDAQ:TPG) solid its stake in Sixth Street back to that company for more than $1B, ending one of Wall Street’s longest, most profitable partnerships, according to a media report.
- The deal was negotiated after TPG (TPG) acquired Angelo Gordon, a business that directly competed with Sixth Street’s lending business, Semafor said on Tuesday, citing people familiar with the matter. The transaction valued Sixth Street at ~$10B.
- The buyback by Sixth Street allows the firm to venture into corporate buyouts and sports investing, while TPG (TPG) can build up its own lending business, which trails competitors like Apollo Global Management (APO) and Blackstone (BX).
- The Sixth Street stake was held by TPG’s (TPG) partners and wasn’t part of its 2022 initial public offering. Sixth Street raised the cash for the buyback from outside sources, but none were strategic investors similar to TPG, Semafor said.
- TPG (TPG) stock dropped 1.7% in Tuesday midday trading.
- Shares in Sixth Street Specialty Lending (NYSE:TSLX), a business development company associated with Sixth Street, edged down 0.1%.
