TPG Angelo Gordon

Last updated
TPG Angelo Gordon
FormerlyAngelo, Gordon & Co. L.P.
Company type Subsidiary
Industry Alternative investment management
FoundedNovember 1988;35 years ago (1988-11)
Founders
  • John M. Angelo
  • Michael L. Gordon
Headquarters 245 Park Avenue
New York City, New York, U.S.
Products Real estate, Credit, Distressed securities, hedge funds [1]
AUM US$73 billion (2023) [2]
Number of employees
650 (2023) [2]
Parent
Website angelogordon.com

TPG Angelo Gordon (formerly Angelo Gordon) is a global alternative investment manager founded in 1988 [3] [4] by John Angelo and Michael Gordon [5] who together ran the arbitrage department of L.F. Rothschild in the 1980s. [6] [7] The firm focuses on four main investment disciplines: credit, real estate, private equity, and multi-strategy. [4]

Contents

Within those broad categories, the firm offers products in distressed debt and non-investment grade corporate credit, convertible and merger arbitrage, [5] residential and consumer debt, energy direct lending, [5] real estate private equity, real estate debt and lending, net lease real estate, private equity, multi-strategy, and middle market direct lending. It offers two types of investment structures: open-ended hedge fund products and closed-ended private equity-style products. [5]

The firm is headquartered in New York City with additional offices worldwide including in San Francisco, Los Angeles, Chicago, London, Amsterdam, Hong Kong, Seoul, Frankfurt, Tokyo and Singapore. [5] [8]

On November 2, 2023, TPG Inc. announced that it had completed the acquisition of Angelo Gordon. [9]

History

Angelo Gordon is a 100% employee-owned, SEC-registered, and has over 600 employees and more than 200 investment professionals. [10]

John Angelo and Michael Gordon founded the firm on strategies with which they had 15 years of prior experience: distressed securities, risk arbitrage, and convertible arbitrage. The multi-strategy platform was added in 1993 as a way to offer investors a single fund which captured many of Angelo Gordon’s investment strategies and could tactically allocate as markets shifted. In 1998, the leveraged loan business was added as an extension of the distressed debt business. [5] [11]

The firm began buying real estate as early as 1990 through investments in the distressed debt of bankrupt real estate companies. In 1993, as real estate markets buckled under the weight of too much debt, the firm launched its opportunistic real estate strategy investments to improve and reposition the property by increasing operating income. [4]

In early 2002, the company added core plus real estate to its real estate strategies as it was able to benefit from its operating partner network, and purchase high quality real estate. [4] Since 2005, the firm has expanded its real estate offerings through a dedicated opportunistic Asian real estate strategy. [12] In the wake of the global financial crisis of 2008 and the European banking crisis of 2011, Angelo Gordon added European real estate to its strategies as prices were depressed and liquidity was severely curtailed in the region. [13]

Net Lease real estate strategy was established in 2005 to focus on below investment grade tenants. [14] Angelo Gordon further expanded into the intersections of real estate and credit with the addition of real estate debt in 2006 [15] and residential and consumer debt in 2008. [16]

In 2009, Angelo Gordon was one of only nine private investment firms to partner with the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation in PPIP—the Private-Public Investment Partnership. [17] The U.S. government invested alongside the selected firms to unlock the frozen credit markets in the wake of the global financial crisis. [18] This was a successful program. [19] [20] [21]

The firm took advantage of the post-2008 financial crisis contraction in bank lending to smaller companies through senior secure direct lending to energy companies in 2013 [22] and to middle market borrowers in the private equity sponsor community in 2014. [23] Additionally, in 2014, the firm launched Twin Brook Capital Partners, its middle market direct lending subsidiary, which provides cash-flow based financing solutions for the middle market private equity community. [24]

After becoming president of Angelo Gordon in October 2013, [25] Larry Schloss left the company in March 2016. [26] Five years after John M Angelo passed away, [27] co-founder Michael Gordon stepped down as chief executive officer and co-chief investment officer on January 1, 2021, and was succeeded by co-chief investment officers Josh Baumgarten and Adam Schwartz. [28]

In May 2023, private equity firm TPG Inc. announced it would acquire Angelo Gordon in a cash and stock deal valued at $2.7 billion. [2] The purchase was completed in November.

Leadership

Angelo Gordon is led by co-CEOs and co-CIOs Josh Baumgarten and Adam Schwartz. Baumgarten and Schwartz were appointed co-CEOs on January 1, 2021, after having served as co-CIOs for three years. Additionally, Mr. Baumgarten leads the firm’s credit business and Mr. Schwartz serves as the head of the firm’s global real estate group. [29]

Awards and recognition

Angelo Gordon’s portfolio managers have in recent years been noted for top performance in their investment strategies. Angelo Gordon’s CMBS fund and the non-investment grade corporate credit fund were recognized by Bloomberg for Best Performance for Directional Fixed Income (2011-2014.) [30] The RMBS/ABS fund appeared in Barron’s Top 100 Hedge Funds in 2013 [31] and in 2014. [32] Angelo Gordon’s flagship multistrategy fund appeared in Business Insider’s 100 Most Successful Hedge Funds in 2012, [33] Bloomberg ‘s 100 Top Performing Large Hedge Funds in 2013 [34] and won the award for CreditFlux Best Credit Multistrategy in 2014. [35] [36]

Investments

Angelo Gordon operates three basic types of investment vehicles:

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References

  1. ↑ Baker, Sophia (May 10, 2018). "Angelo Gordon adds executive to expand European performing credit business". Pensions & Investments.
  2. 1 2 3 Gara, Antoine; Indap, Sujeet (15 May 2023). "TPG pushes into credit investing with $2.7bn deal for Angelo Gordon" . Financial Times . Archived from the original on 15 May 2023.
  3. ↑ "Company Profile for Angelo Gordon & Co LP". Bloomberg. Retrieved 3 June 2013.
  4. 1 2 3 4 "Profile". IPE. Retrieved 7 January 2015.[ permanent dead link ]
  5. 1 2 3 4 5 6 "Company Overview of Angelo, Gordon & Co". Bloomberg Businessweek. Archived from the original on July 30, 2013. Retrieved 7 January 2015.
  6. ↑ "Angelo, Gordon & Co". WallstreetOasis.com. Archived from the original on 2015-04-07. Retrieved 7 January 2015.
  7. ↑ Fabrikant, Geraldine "BUSINESS PEOPLE; 2 Officials at Rothschild Leaving to Start Firm." The New York Times , November 2, 1988
  8. ↑ "Contact". Angelo Gordon. Retrieved April 17, 2019.
  9. ↑ "TPG Completes Acquisition of Angelo Gordon". TPG. Retrieved 2023-11-28.
  10. ↑ "About Angelo Gordon". July 7, 2022.
  11. ↑ "Through the Cycle: Senior Secured Loans Poised to Perform" (PDF). Angelo, Gordon & Co. Archived from the original (PDF) on 2016-03-05. Retrieved 8 January 2015.
  12. ↑ Hu, Bei (3 February 2009). "Angelo Gordon Seeks Up to $1 Billion for Asia Real Estate Fund" . Retrieved 8 January 2015.
  13. ↑ "NYC's Angelo, Gordon aims at doubling European exposure to €1bn". Property Investor Europe. 9 March 2014. Archived from the original on 8 January 2015. Retrieved 8 January 2015.
  14. ↑ "Angelo, Gordon & Co. Announces Closing of AG Net Lease Realty Fund, L.P. With Commitments of $160 Million". PR Newswire. 22 January 2007. Retrieved 8 January 2015.
  15. ↑ Kenly Waite, Susan (24 March 2011). "Angelo Gordon Preps CMBS Fund". Hedge Fund Intelligence. Retrieved 8 January 2015.
  16. ↑ "Jonathan Lieberman Profile". Forbes. Archived from the original on January 8, 2015. Retrieved 8 January 2015.
  17. ↑ "Public-Private Investment Program-". US Department of the Treasury. Retrieved 8 January 2015.
  18. ↑ "GE Capital Real Estate and Angelo, Gordon & Co. Pre-Qualified as Legacy Securities Fund Manager for the U.S. Department of the Treasury's PPIP Program". Businesswire. 8 July 2009. Retrieved 8 January 2015.
  19. ↑ Diamond, Randy (14 May 2012). "PPIP report offers chance for direct comparison of money managers". Pionline.com. Pensions and Investments. Retrieved 8 January 2015.
  20. ↑ Dash, Eric (26 August 2010). "A Big Surprise: Troubled Assets Garner Rewards". The New York Times. Retrieved 8 January 2015.
  21. ↑ Comtois, James (2 September 2013). "Managers make hay with toxic mortgage funds". Pensions and Investments. Retrieved 8 January 2015.
  22. ↑ "Angelo Gordon hires energy team for credit investments". Reuters PE HUB. 25 October 2013. Retrieved 8 January 2015.
  23. ↑ "Angelo, Gordon & Co. to launch middle-market direct-lending business". LeveragedLoan.com. Retrieved 8 January 2015.
  24. ↑ "Chris Williams officially our at Twin Brook Capital Partners". Buyouts. 2019-01-19.
  25. ↑ Braun, Martin Z. (10 October 2013). "NYC Investment Chief Schloss Headed to Angelo, Gordon". Bloomberg. Retrieved 8 January 2015.
  26. ↑ Herbst-Bayliss, Svea. "Angelo, Gordon President Larry Schloss leaving the firm: letter". Reuters. Retrieved 22 March 2016.
  27. ↑ Moyer, Liz (4 January 2016). "John Angelo, Investor and Co-Founder of Angelo Gordon, Dies at 74". The New York Times. Retrieved 5 January 2016.
  28. ↑ "Angelo Gordon Chief Executive to Step Down, Succeeded by Co-CIOs". Bloomberg Law. September 29, 2020.
  29. ↑ "Angelo Gordon Management Team". Angelo Gordon. Retrieved 8 March 2021.
  30. ↑ "Performance Snapshot:Directional Fixed-Income Funds". Bloomberg Brief. 10 March 2015. Retrieved 7 October 2015.
  31. ↑ Uhlfelder, Eric (18 May 2013). "Best 100 Hedge Funds". Barron's. Retrieved 8 January 2015.
  32. ↑ Uhlfelder, Eric (17 May 2014). "Our Top 100 Hedge Funds". Barron's. Retrieved 8 January 2015.
  33. ↑ "The 100 Most Successful Hedge Funds Of 2012". Business Insider. Retrieved 8 January 2015.
  34. ↑ "The 100 Top-Performing Large Hedge Funds". Bloomberg. 4 January 2013. Retrieved 8 January 2015.
  35. ↑ "CLO Opportunities Symposium & Manager Awards" (PDF). Creditflux. Archived from the original (PDF) on 13 April 2015. Retrieved 8 January 2015.
  36. ↑ Davidson, Tom (29 May 2014). "Recognizing the Best in Credit". Creditflux. Retrieved 8 January 2015.

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