Three retirement plans are among TPG Specialty Lending’s largest shareholders, according to regulatory documents, showcasing the pension funds’ interest business development companies.
Two US limited partners, New Jersey’s Division of Investment and the State Teachers Retirement System of Ohio, are the largest holders of common stock, with 9.7 percent and 7.3 percent, respectively. Universities Superannuation Scheme, a UK pension plan, holds 5.8 percent.
Two financial institutions made the list as well: Wells Fargo & Company also owns 5.8 percent of the shares, while FMR, a Fidelity Investments vehicle, holds 5.6 percent.
The institutional investors have been shareholders into TSLX since it began as a private BDC, which ended up going public.
TPG declined to comment. DoI, STRS and UAS could not be reached for comment.
Both the STRS and DoI hold multiple positions in BDCs. A December regulatory filing with the SEC last fall showed STRS committed up to $200 million with Golub Capital Investment Corporation. The DoI committed $600 million to Owl Rock Capital Corporation in August, $400 million to the BDC and $200 million earmarked for equity co-investments.
Though often owned by retail shareholders, Ares Capital Corporation chief executive officer Kipp deVeer told Private Debt Investor in November’s BDC Roundtable that institutional investors can be a good fit for BDCs.
“I would tell you that one of the things institutions find appealing is that they get access to a differentiated set of assets,” he said. “It really is a total-return pitch to institutional investors, where we offer a combination of income and capital appreciation over time and pretty significant downside protection.”