Twin Brook closes debut fund on $596m – exclusive

The Angelo, Gordon direct lending subsidiary has about $1.6bn in total capital, between the commingled fund, separate accounts and credit facilities.  


Twin Brook Capital Partners, the Chicago-based direct lending subsidiary of Angelo, Gordon & Co., has finished fundraising for its first fund on $596 million, according to sources familiar with the firm. The vehicle surpassed its $500 million target. The business now runs about $900 million of equity in the strategy, including separate accounts. The platform's total buying power is at about $1.6 billion, including credit lines, PDI understands.

The leverage stands at about 1.25-1.5 to 1, as some of the separate accounts include leverage while others do not.

So far, the firm already has invested $650 million of the existing capital from the fund, separate accounts and credit lines. Given the rapid pace at which it has been deploying capital, Twin Brook plans to launch a second fund with a $1 billion target soon, sources say.

Twin Brook invests in a wide range of industries and targets companies in the $3 million to $50 million EBITDA range, with the average company EBITDA falling at about $17 million. Twin Brook's average hold size is about $20 million to $30 million, though the firm can go up to $50 million.

The AG subsidiary was formed in 2014 when Angelo, Gordon hired Trevor Clark and Christopher Williams, who previously led Madison Capital Funding, another Chicago-based mid-market lender. The duo have since hired several other former colleagues from Madison Capital. The firm is expected to add four more senior people in the next month or two, PDI understands.