TPG to acquire Angelo Gordon in $2.7b transaction

TPG, a global alternative asset management firm, has agreed to acquire Angelo Gordon, a $73 billion alternative investment firm focused on credit and real estate investing, in a $2.7 billion cash and equity transaction.

The transaction amount is based on TPG Inc.’s share price as of May 12, and includes an estimated $970 million in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG. The transaction also includes an earnout based on Angelo Gordon’s future financial performance, valued at up to $400 million.

The companies had been in talks regarding the deal, which would mark TPG’s significant expansion into credit investing.

Angelo Gordon’s $55 billion credit platform offers scaled and diversified capabilities across the credit-investing spectrum, including corporate credit, direct lending and structured credit, and its $18