Key Takeaways
- • TPG Twin Brook and Coller Capital have closed CV Fund I, a $3 billion continuation vehicle that represents the largest-ever completed private credit continuation vehicle to date, according to financial adviser Campbell Lutyens.
- • The fund recapitalizes a diversified portfolio of floating-rate, sponsor-backed senior secured loans sourced from TPG Twin Brook's 2016 vintage AG Direct Lending Fund II LP ($2.3 billion) and 2018 vintage AG Direct Lending Fund III LP ($2.75 billion).
- • The structure enables existing limited partners from the two predecessor funds to achieve liquidity while retaining the option to co-invest alongside new capital providers in the continuation vehicle.
- • TPG Twin Brook, a Chicago-based middle-market direct lender acquired by TPG in November 2023 from Angelo Gordon, focuses on senior secured loans to private equity-backed companies with EBITDA between $3 million and $50 million, with typical hold sizes ranging from $25 million to $150 million.
- • The successful close demonstrates institutional demand for creative liquidity solutions in the private credit market and validates TPG Twin Brook's flexible, portfolio-based approach to managing extended loan lifecycles.
Summary
TPG Twin Brook and Coller Capital have completed the largest private credit continuation vehicle ever closed, raising $3 billion for CV Fund I. The continuation vehicle consolidates a portfolio of floating-rate, sponsor-backed senior secured loans originated from two predecessor funds: the $2.3 billion 2016 vintage AG Direct Lending Fund II LP and the $2.75 billion 2018 vintage AG Direct Lending Fund III LP. According to Campbell Lutyens, the financial adviser on the transaction, this marks a significant milestone for the continuation vehicle market in private credit.
The fund structure provides existing limited partners in both predecessor funds with meaningful liquidity while preserving their option to maintain portfolio exposure through continued participation in CV Fund I alongside new investors. This dual benefit—immediate exit opportunity coupled with optional re-investment—addresses a key challenge in managing extended loan portfolios and demonstrates the market's appetite for flexible, solutions-oriented credit products.
TPG Twin Brook, based in Chicago, specializes in direct lending to private equity-sponsored middle-market companies, focusing on senior secured financings. The platform targets companies with EBITDA between $3 million and $50 million, with particular emphasis on those below the $25 million EBITDA threshold. The firm deploys senior financing up to $200 million with individual hold sizes typically ranging from $25 million to $150 million. Beyond senior secured loans, TPG Twin Brook also pursues opportunistic investments in second lien, mezzanine, and equity co-investment opportunities. TPG acquired Angelo Gordon, Twin Brook's parent company, in November 2023, integrating Twin Brook into TPG's broader credit platform.
Trevor Clark, founder and managing partner of TPG Twin Brook, stated that the successful close underscores the strength of the partnership with Coller Capital and demonstrates institutional confidence in their approach to maximizing value from high-performing assets. The transaction was advised by Ropes & Gray, with Campbell Lutyens serving as financial adviser. The close reflects growing institutional investor preference for continuation vehicles as an efficient mechanism to extend the lifecycle of performing credit assets while providing portfolio managers with flexibility in managing exit timing and valuation realization.
The fund structure provides existing limited partners in both predecessor funds with meaningful liquidity while preserving their option to maintain portfolio exposure through continued participation in CV Fund I alongside new investors. This dual benefit—immediate exit opportunity coupled with optional re-investment—addresses a key challenge in managing extended loan portfolios and demonstrates the market's appetite for flexible, solutions-oriented credit products.
TPG Twin Brook, based in Chicago, specializes in direct lending to private equity-sponsored middle-market companies, focusing on senior secured financings. The platform targets companies with EBITDA between $3 million and $50 million, with particular emphasis on those below the $25 million EBITDA threshold. The firm deploys senior financing up to $200 million with individual hold sizes typically ranging from $25 million to $150 million. Beyond senior secured loans, TPG Twin Brook also pursues opportunistic investments in second lien, mezzanine, and equity co-investment opportunities. TPG acquired Angelo Gordon, Twin Brook's parent company, in November 2023, integrating Twin Brook into TPG's broader credit platform.
Trevor Clark, founder and managing partner of TPG Twin Brook, stated that the successful close underscores the strength of the partnership with Coller Capital and demonstrates institutional confidence in their approach to maximizing value from high-performing assets. The transaction was advised by Ropes & Gray, with Campbell Lutyens serving as financial adviser. The close reflects growing institutional investor preference for continuation vehicles as an efficient mechanism to extend the lifecycle of performing credit assets while providing portfolio managers with flexibility in managing exit timing and valuation realization.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.