Twin Brook’s Williams not in key-man clause for Fund III – exclusive

The firm co-founder is on indefinite leave from the firm and has since invested in a car wash business.

A founder of Twin Brook Capital Partners has been omitted from the key-man clause for the firm’s latest vehicle, according to sources familiar with the situation.

Chris Williams, a partner at the Angelo, Gordon mid-market lending arm who is on indefinite leave, is not named in that clause of its third senior debt fund, AG Direct Lending Fund III.

The vehicle may be on track to be the largest lower mid-market fund raised to date. The vehicle has held a first close on about $2 billion, which is the fund’s target, according to sources; Twin Brook’s second fundraise collected $2.3 billion across a commingled fund and separate accounts.

The firm declined to comment, while Williams did not return multiple calls seeking comment.

The Chicago-based firm told its investors in a letter from the fourth quarter of last year, as PDI previously reported, that Williams took the leave due to the health of a family member. His leave did not trip the key man clause for Fund II, in which he was named, sources said at the time.

Since taking leave, Williams has invested in a car wash, a source told Private Debt Investor and according to a Facebook post. Williams invested in the project alongside Kevin Jepsen, which formed Williams & Jepsen Management, according to a local media report.

“Kevin and I have been involved in investor groups, but this the first one we have built ourselves,” Williams told Sauk Valley Media.

Williams and Trevor Clark, both formerly of Madison Capital Funding, founded Twin Brook with the backing of Angelo Gordon in 2014. The firm invests in private equity-backed lower mid-market companies.