TPG Credit recently closed TPG AG Credit Solutions Fund III, L.P. (“Fund III”) with over $6.2B in capital commitments in the commingled vehicle, exceeding the original $4.5B target by nearly 40% and representing an approximate doubling of the $3.1B raised in the predecessor vehicle.

Fund III represents the firm’s flagship series of draw-down funds focused on an all-weather, solutions-based approach to investing in special situation credit opportunities. Fund III will focus on providing bespoke, creative, and flexible financing solutions to help publicly-traded, privately-held, and sponsor-backed companies across a diverse range of industries achieve growth, liquidity, and various other objectives. 

Ryan Mollett, Managing Partner of Credit Solutions said, “We are proud of the strong support we received for Fund III from both long-time clients and new relationships to the strategy and TPG. We believe this is a testament to the power of our integrated platform and ability to deliver creative, flexible capital solutions to companies across public and private markets in complex environments. Our strategy is built on partnering with management teams and sponsors to address challenges critical to the success of their businesses, and we are committed to using our capital, creativity and scale to help companies and drive performance for our investors.”

CSF III Key Highlights:

• CSF III raised over $6.2B in capital commitments in the commingled vehicle, exceeding the original $4.5B target by nearly 40% and representing an approximate doubling of the $3.1B raised in the prior CSF II.
  
  • Fund III’s LP base is comprised of a diversified mix across investor type and geography; the fund received strong support from existing limited partners and welcomed many large, sophisticated, and prominent global investors new to the Credit Solutions platform, and TPG more broadly.

• Fund III seeks to deliver equity-like returns with downside risk protection through primarily credit instruments.
  
  • Financings are generally structured as senior-secured positions in the capital structure, with low- to mid-teens contractual cash coupons, and an estimated loan-to-value ratio of 35% to 65%. 
  • Notable recent investments include privately-negotiated financing transactions with DISH DBS, X Corp, and Altice USA, demonstrating an ability to invest in complex, high-profile situations.

• Fund III reflects the firm’s strong conviction in a substantial, multi-year opportunity driven by higher debt costs, upcoming maturities, diverse capital needs for growth and liquidity, and limitations in traditional capital markets. 

• TPG Credit Solutions’ 30+ and growing team partners with company management and financial sponsors to creatively resolve complex financial challenges, dynamically allocating capital across public and private opportunities as market conditions evolve.