TSLX co-CEO to focus on TPG European direct lending arm

The firm invested in 10 companies in the second quarter.

TPG Specialty Lending (TSLX) announced on its second-quarter earnings call that Michael Fishman will step down as co-chief executive officer of TPG Capital's business development company to focus on the firm's direct lending efforts in Europe.

The switch, TSLX co-CEO Josh Easterly said, will occur at the end of the year, and Bo Stanley, the BDC's president, will take over Fishman's duties within TSLX. Fishman will work closely with the London team in his new role. TPG Specialty Lending Europe closed its debut fund in Europe on €1.4 billion in deployable capital, including €812 million in equity commitments.

The vehicle will underwrite and hold positions of €30 million to €300 million. TSLE will invest up and down the capital stack in companies with valuations ranging from €50 million to €500 million, but it focuses on senior secured loans, according to the firm's website.

TSLX originated $397.7 million in deals in the second quarter, almost doubling that figure from the same time last year, when TSLX originated $199.7 million. It was also an increase from last quarter's $285.9 million.

New commitments totalled $267.7 million to five existing and five new portfolio companies, an increase from $184.7 million of commitments in three new and three existing portfolio companies in the second quarter of 2016.

New investments include a $60 million first lien loan in Jive software, according to a Wells Fargo Securities analyst report. The business services company that was acquired by enterprise data security and encryption business Wave Systems, a portfolio company of ESW Capital, for $462 million.

The firm also provided a $50 million first lien loan, the Wells Fargo report showed, to back Marlin Equity Partners' take-private buyout of Tangoe, a telecommunications management firm. The deal also included the merger of Tangoe with Marlin portfolio company Asentinel.

TSLX's net asset value per share posted a 60-cent year-on-year increase, rising to $16.15 at the end of the second quarter from $15.55 at the same time last year. It reported net investment income of $33.9 million, or 57 cents a share. 

Editor's Note: Any earlier version of this story's headline read “TSLX co-CEO moving to TPG European direct lending arm”. He will be dedicating more time to the strategy not moving there. We regret the error.