Angelo Gordon launches new $800m unit to target growing private debt demand

Angelo Gordon launches new $800m unit to target growing private debt demand

Time Stamp: January 6, 2023 5:25 AM
Source Node: 1880130

Credit and real estate investment major Angelo Gordon & Co has launched a new loan investment unit with more than $800m under management.

Twin Brook Capital Income Fund is a non-traded business development company that has about $530m in equity and over $1bn in total investment commitments at launch.

The business unit completed its merger with AGTB Private BDC, its predecessor vehicle, at the start of the year.

TCAP seeks to generate attractive, consistent total returns by targeting a portfolio of floating rate, senior secured loans – predominantly those at the top of the capital structure, backed by collateral, and have strong lender protections in place.

It will focus on investing in loans to US private equity-backed companies in the middle market, with an emphasis on lower middle market businesses – which it defines as those with less than $25m of EBITDA.

Trevor Clark, CEO of TCAP and head of Angelo Gordon’s middle market direct lending business, Twin Brook Capital Partners, said, “We’ve observed growing interest in private credit as an attractive alternative to traditional fixed income in recent years.

“However, as the private debt space has evolved and attracted more capital, we’ve seen investors become increasingly discerning and more selective when it comes to the types of strategies they are looking at.

“Members of the senior team at Twin Brook have spent over 20 years focused on the lower middle market, so it is not only a space that our investment professionals know well, but a substantial addressable market that we believe offers a robust opportunity set.”

In connection with the Merger, TCAP issued almost 21 million Class I common shares to predecessor BDC’s investors, and going forward intends to sell shares in its continuous offering on a monthly basis.

Copyright © 2023 AltAssets

Time Stamp:

More from Altassets