Key Takeaways
- • Sixth Street is undertaking the largest European recruitment drive in its 15-year history, leasing a new regional headquarters in London's Mayfair and adding up to 20 employees this year for private credit and real estate businesses, according to Reuters.
- • Sixth Street manages $75 billion globally and employs more than 600 people, including over 200 investment professionals, with around 60 staff currently in London.
- • Co-CIO Julian Salisbury says private credit is filling a gap as banks face stricter capital and provisioning rules that make holding certain lending assets more costly.
- • The firm launched a dedicated structured products business in March 2022, led by Michael Dryden, former global head of securitised products finance at Credit Suisse, with asset-backed finance a particular focus.
- • Sixth Street plans to capitalise on wider discounts in European real estate, recently buying with other investors a portfolio of Italian supermarkets and shopping malls valued at 258 million euros.
Summary
Sixth Street is embarking on the biggest European recruitment drive in its 15-year history, according to Reuters, leasing a new regional headquarters in London's Mayfair and adding up to 20 employees this year. The expansion supports a push into private credit and real estate. The firm, founded in 2009, is a $75 billion global investment manager whose leadership includes several former Goldman Sachs executives. Alan Waxman, a Goldman alumnus, is co-founder and CEO.
Julian Salisbury, co-chief investment officer, told Reuters that the outlook for private markets in Europe is very strong. He linked the opportunity to the growing scale of firms like Sixth Street, which he said gives companies the option to stay private longer or grow with the support of long-term private investors. Salisbury also said banks are increasingly seeking partners to share lending risk, because tighter provisioning and capital requirements make holding such assets more punitive. Private credit still represents only a fraction of overall bank lending, but its rapid growth has drawn concern from some regulators and financiers over limited supervision and potential effects on financial stability.
Salisbury, who spent 25 years at Goldman Sachs before joining Sixth Street in February, cited London's talent pool as the reason it is the firm's international hub, though he acknowledged other cities were catching up after Brexit. Sixth Street currently employs about 60 people in London, and its new Dover Street offices have room for roughly twice that number. The firm has had a local presence in the UK since 2011 and plans to focus international expansion on London for now, with Asia a future priority. Salisbury said he hoped UK politicians ahead of national elections would protect financial services, which he called a "crown jewel."
On real estate, Sixth Street is positioning to take advantage of larger discounts being offered by sellers. Recent activity includes buying, alongside other investors, a portfolio of Italian supermarkets and shopping malls valued at 258 million euros ($275.72 million). The firm hired Marcos Alvarado from Safehold in February to head its U.S. real estate team, and Salisbury said strengthening the European real estate business is a 2024 priority. Salisbury described real estate as "a real stock picker's market."
Sixth Street's structured products unit, launched in March 2022 under Michael Dryden, focuses on asset-backed finance. The firm also led a KKR-backed consortium that bought Greensky, a home improvement lending platform, earlier this year. Salisbury said private credit markets are expected to double over the next five years. Sixth Street has also made investments ranging from Airbnb to Bay FC, a women's professional soccer franchise, and has provided capital to Real Madrid and FC Barcelona.
Julian Salisbury, co-chief investment officer, told Reuters that the outlook for private markets in Europe is very strong. He linked the opportunity to the growing scale of firms like Sixth Street, which he said gives companies the option to stay private longer or grow with the support of long-term private investors. Salisbury also said banks are increasingly seeking partners to share lending risk, because tighter provisioning and capital requirements make holding such assets more punitive. Private credit still represents only a fraction of overall bank lending, but its rapid growth has drawn concern from some regulators and financiers over limited supervision and potential effects on financial stability.
Salisbury, who spent 25 years at Goldman Sachs before joining Sixth Street in February, cited London's talent pool as the reason it is the firm's international hub, though he acknowledged other cities were catching up after Brexit. Sixth Street currently employs about 60 people in London, and its new Dover Street offices have room for roughly twice that number. The firm has had a local presence in the UK since 2011 and plans to focus international expansion on London for now, with Asia a future priority. Salisbury said he hoped UK politicians ahead of national elections would protect financial services, which he called a "crown jewel."
On real estate, Sixth Street is positioning to take advantage of larger discounts being offered by sellers. Recent activity includes buying, alongside other investors, a portfolio of Italian supermarkets and shopping malls valued at 258 million euros ($275.72 million). The firm hired Marcos Alvarado from Safehold in February to head its U.S. real estate team, and Salisbury said strengthening the European real estate business is a 2024 priority. Salisbury described real estate as "a real stock picker's market."
Sixth Street's structured products unit, launched in March 2022 under Michael Dryden, focuses on asset-backed finance. The firm also led a KKR-backed consortium that bought Greensky, a home improvement lending platform, earlier this year. Salisbury said private credit markets are expected to double over the next five years. Sixth Street has also made investments ranging from Airbnb to Bay FC, a women's professional soccer franchise, and has provided capital to Real Madrid and FC Barcelona.
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