(Bloomberg) -- TPG Inc.’s Twin Brook Capital Partners closed its fifth direct lending fund with $3.9 billion of aggregate capital commitments, surpassing a $3 billion target, according to a person familiar with the matter.
TPG AG Direct Lending Fund V received some $1.7 billion of commitments in the 10 days before the offering period ended, said the person, who asked not to be identified as the matter is private.
The fund, which closed on June 30 according to the person, was launched in 2022. Its managers saw an ownership change midway through the fundraise as Twin Brook’s parent, Angelo Gordon, was acquired by TPG last year.
Such developments can add uncertainty for investors looking to commit capital, amid what’s been a challenging environment for alternative asset managers due to interest-rate uncertainty and limited deal flow.
The new fund has a roughly 60% re-up rate from investors in TPG Twin Brook’s $3.5 billion fourth fund, the person said. They include Singapore sovereign wealth fund GIC Pte, which committed $375 million, and the World Bank at $130 million, the person added.
New investors include Allianz SE, which committed $625 million, as well as $250 million from South Korea’s National Pension Service, according to the person. TPG, GIC, the World Bank and Allianz declined to comment. The NPS didn’t respond to a request for comment.
The investor shift has resulted in a much different mix than the fourth fund.
The new fund’s share of commitments by public and corporate pensions is 27 percentage points less, while the share respectively increased 23 and 16 percentage points for insurers and sovereign wealth funds, the person said. That mirrors broader trends in the $1.7 trillion private credit market, with interest rising from SWFs and the insurance sector.
By geography, US investors had 25 percentage points less of the fifth fund’s commitments versus the fourth while they rose 9 points for European investors and 16 points for APAC ones, according to the person.
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