TPG raised more than it anticipated for its latest opportunistic real estate credit fund. Next up is deploying the plentiful capital.
The private equity firm closed the TPG Real Estate Credit Opportunities fund with $2.1 billion in commitments, the company announced during its third-quarter earnings call, according to the Commercial Observer. That easily exceeded the $1.5 billion target the fund had set fr itself.
The fund already deployed $426 million worth of equity investments in more than a dozen assets across the country, primarily in the multifamily and industrial sectors.
The fund is structured for investments in credit strategies with high-yield senior and subordinate loans. Those investments are expected to take up the brunt of the commitments, though the fund will also take preferred equity positions in capital stacks, commercial mortgage-backed securities and collateralized loan obligations.
“We view this current cycle, akin to what’s happened within corporate credit, really does relate to nonbanks being more active in lenders into today’s market,” TPG Real Estate Credit head Doug Bouquard told the publication.
Since launching in 2009, TPG Real Estate has invested $15 billion in equity. It has also originated $20 billion in debt over the same timeframe.
TPG’s presence in real estate credit exploded in 2023, when it acquired Angelo Gordon, an investment firm focused on the credit and real estate markets, for $2.7 billion. At the time, Angelo Gordon had roughly $53 billion in assets under management, the majority of which were in credit or real estate.
More players have been scouring real estate credit for opportunities five years after the pandemic upended the commercial real estate industry, as well as its financial support system. Last month, Adam Piekarski’s Derby Lane Partners announced that it amassed $1.8 billion in commitments for its credit investment business.
Read more
TPG acquires Angelo Gordon in $2.7B deal
TPG ready to shop with $14B capital reserve
Former MSD real estate head makes historic debut in credit sector
