Twin Brook garners over $2bn for second fund – exclusive

The firm is keeping busy deploying capital, too, closing at least eight transactions in the past two months.

 Twin Brook Capital Partners has more than doubled the amount garnered for its second direct lending vehicle, which was launched last summer shortly after the mid-market financier wrapped up its debut fund.

The Chicago-based affiliate of Angelo Gordon has locked down at least $2.3 billion in equity commitments, including $1.5 billion for the commingled vehicle, AG Direct Lending Fund II, and more than $750 million in separate accounts, according to a source familiar with the situation, who expects a final close by this summer.

Twin Brook declined to comment on the fundraising.

Fund I closed in May 2016 with $596 million in equity commitments, which beat its $500 million target. At the time, the firm oversaw $900 million of commitments, which included separate accounts. Twin Brook was back on the fundraising trail within weeks, launching Fund II in July, as Private Debt Investor previously reported.

The separate accounts raised for the second vehicle include a $450 million pool of capital for Texas County & District Retirement System. The $24.5 billion pension fund made the commitment on 22 May, according to the Austin, Texas-based retirement plan’s website. Investors in the commingled fund include the Teachers’ Retirement System of the State of Illinois, which committed $100 million, according to PDI data.

Fund II offers both a sleeve without leverage and another utilising leverage, which Twin Brook had anticipated would be the same as its initial vehicle, PDI previously reported. The first fund was levered at 1.25:1 and the debt-to-equity ratio on the levered version of the second fund was expected to be the same.

The firm has continued to be active in the deal market, having disclosed at least eight financings for April and May, according to its website. Almost $450 million had been deployed across six of those deals, the transactions that disclosed the loan principal. The largest investment was a $98 million refinancing of EaglePoint Capital’s three-dimensional sign-maker Moss. It acted as the sole arranger and administrative agent for all the transactions.

The firm targets senior financing of up to $200 million, with hold sizes from $15 million-$50 million. Twin Brook targets companies of about $3 million to $50 million in EBITDA size, with diversified revenue sources and a historically stable cashflow, according to the firm’s website. While the firm targets a range of sectors, it specialises in aerospace and defence, healthcare and insurance and financial services.

Twin Brook launched in 2014 when Angelo Gordon hired Trevor Clark and Chris Williams, two former Madison Capital Funding executives, to lead the business.

New York-based Angelo Gordon invests in distressed debt, real estate, energy lending and private equity. The firm is currently seeking $400 million for its second energy fund, for which it has raised $175 million, according to PDI data.