TPG snaps up Angelo Gordon in $2.7bn deal

US private equity firm TPG Inc is to buy debt manager Angelo Gordon in a $2.7bn deal, it was confirmed on Monday.

Founded in 1988, Angelo Gordon, an alternative investment firm focused on credit and real estate, manages $55bn of assets and employs around 650 people in 12 offices in the US, Europe and Asia. The two firms had combined assets under management of $208bn as at 31 December.

New York-listed TPG said the acquisition would “meaningfully expand’ its product offering, and marked a “significant” move into credit investing.

Jon Winkelried, chief executive, added: “The addition of Angelo Gordon also underscores our continued focus on growing and scaling through diversification, while driving long-term value for our shareholders.”

Josh Baumgarten, co-chief executive and head of credit at Angelo Gordon, said: “This is a terrific partnership that provides Angelo Gordon with the scale to capitalise on the growing opportunity that we see in the credit and real estate markets.”

TPG, which debuted on Wall Street in January last year, will pay the bulk of the purchase price in stock.

The deal is expected to close in the fourth quarter.