Private equity giant TPG in talks to buy Angelo Gordon

Seeking to get back into credit investing, private equity giant TPG Inc. is reportedly in negotiations to buy real estate firm Angelo Gordon.

The deal, if it goes through, would value Angelo Gordon at $2 billion, Bloomberg reported, citing sources close to the matter.

TPG has about $135 billion of assets, including $20 billion of real estate, under management, and about 1,100 employees worldwide, according to its website. 

Angelo Gordon has about $53 billion of assets under management, most of which is in credit and real estate, and more than 600 employees, according to its website.

TPG demerged from Sixth Street in 2020. TPG CEO Jon Winkelreid has sought to get back into credit investing since the split, Bloomberg said. 

“It’s important and a priority of ours to try to continue to add a credit strategy, a broader credit strategy to our platform over time,” Winkelreid said on an earnings call last year, according to Bloomberg. “We feel it has a lot of value to us.”

TPG has been active in major acquisitions and sales in recent years.

In 2020, TPG acquired ClaimsXten, Change Healthcare’s claims-editing business, for $2.2 billion, according to Fierce Healthcare.

Two years ago, TPG Capital sold the Gelson’s Markets chain, which included 27 specialty stores in Southern California, after what had been a turbulent year for the private equity firm.

The pandemic spurred TPG to make some big real estate moves in 2020. In May of that year, TPG RE Finance sold off $1 billion in commercial real estate debt to raise cash to meet its obligations.

Angelo Gordon in March sold half of its stake in Brookfield DTLA Fund Office Trust Investor, the public entity that owns Brookfield’s Downtown L.A. portfolio. 

The Los Angeles-based investment firm sold 328,000 shares between Feb. 13 and March 3, according to a Securities & Exchange Commission filing last week. 

— Ted Glanzer