Angelo Gordon’s Twin Brook Closes Largest Ever Fund

Angelo, Gordon & Co. has closed AG Direct Lending Fund III LP with $2.75 billion in equity commitments. The new fund, which is managed by Twin Brook Capital Partners, Angelo Gordon’s middle market direct lending subsidiary, closed above its $2 billion target and is the firm’s largest direct lending fund to date.

As with earlier funds, Twin Brook will seek to capitalize on the long-term investment opportunities in middle market direct lending by sourcing, underwriting, and actively managing a diversified portfolio of middle market, floating rate, senior secured loans, with a focus on providing first lien secured debt to lower middle market, sponsor-backed companies.

Twin Brook targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s flexible product suite and customized financing solutions allows for opportunistic investments in second lien, mezzanine, and equity co-investments.

The new fund received strong backing from existing Angelo Gordon investors and included several new institutional investors. “I’d like to thank our new and returning investors for their support and confidence in our strategy. The robust reception this fund received is a testament to our deep bench of talent, differentiated platform, and unique focus on the lower middle market,” said Twin Brook Founder and Managing Partner Trevor Clark. “With over $5 billion of buying power from this fund, our experienced team is well positioned to execute on our strong pipeline of opportunities and continue our tradition of providing leadership, support, and financing solutions to our private equity clients.”

Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. Since inception in the fourth quarter of 2014, Twin Brook has closed transactions with over 170 borrowers involving more than 75 different private equity firms, and currently has over $7.6 billion of total commitments to its portfolio companies (www.twincp.com).

Twin Brook’s earlier fund, AG Direct Lending Fund II LP, closed in 2017 with a total of $2.3 billion in equity capital.

Angelo, Gordon & Co., Twin Brook’s parent company, is an alternative investor with a focus on credit, real estate, private equity, and other strategies. The firm, founded in November 1988, currently manages approximately $33 billion in capital and has over 510 employees, including 210 investment professionals. Angelo Gordon is headquartered in New York with additional offices across the US, Europe and Asia (www.angelogordon.com).

© 2019 Private Equity Professional | June 19, 2019

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