The AG Direct Lending Fund III managed by Chicago’s Twin Brook Capital Partners, which is Angelo, Gordon & Co. L.P.’s middle-market direct lending subsidiary, has exceeded its $2 billion target.
New York-Based Angelo, Gordon, a $33 billion alternative investment firm focused on credit and real estate investing, raised more than $2.75 billion in equity commitments for the fund, making it the firm’s largest direct lending fund to date.
The fund will seek to capitalize on the long-term investment opportunities in middle-market direct lending by sourcing, underwriting and actively managing a diversified portfolio of middle-market, floating-rate, senior-secured loans, with a focus on providing first lien secured debt to lower middle-market, sponsor-backed companies.
Twin Brook targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million.
The fund received strong backing from existing Angelo Gordon investors and welcomed a number of new global institutional investors.
“With over $5 billion of buying power from this fund, our experienced team is well positioned to execute on our strong pipeline of opportunities and continue our tradition of providing leadership, support, and financing solutions to our private equity clients,” Twin Brook Founder and Managing Partner Trevor Clark said.
Since inception in the fourth quarter of 2014, Twin Brook has closed transactions with over 170 borrowers involving more than 75 different private equity firms, and currently has over $7.6 billion of total commitments to its portfolio companies.
AG Direct Lending Fund II closed in 2017 and raised $2.3 billion in total equity capital between the fund and separately managed accounts.