Angelo, Gordon’s Twin Brook Capital Partners Raises $1.6B For Second Direct Lending Fund

Jul 19 2017 | 10:51pm ET

Twin Brook Capital Partners, the middle-market direct lending unit of alternative investment manager Angelo, Gordon & Co., has raised $1.6 billion in capital commitments for its second fund, smashing its original target by $600 million. 

Total capital raised for the new fund, named AG Direct Lending Fund II, exceeds $2.3 billion when separately managed accounts affiliated with the strategy are included, the company said in a statement.

The fund 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 first lien secured debt. 

The new fund will target senior financing opportunities up to $200 million with hold sizes across the Twin Brook platform ranging from $25 million up to $100 million, the statement said. It will also consider opportunistic investments in second liens, mezzanine, unitranche and equity co-investments.

“With $4 billion of buying power and over $5.6 billion of total committed capital, we are well positioned to continue to serve our borrowers and private equity clients investing in the U.S. middle market,” said Trevor Clark and Chris Williams, co-heads of Twin Brook, in the statement.

Ropes & Gray advised on the raise, led by hedge funds partner Jessica O’Mary and tax partner Adam Greenwood.

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 110 transactions and provided total arranged commitments of over $3.2 billion. 

Headquartered in New York, Angelo, Gordon & Co. is a privately held limited partnership founded in November 1988. The firm currently manages approximately $28 billion with a primary focus on three core competencies – credit, real estate and private equity strategies. 

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