Angelo Gordon’s credit and real estate investment arm, Angelo Gordon & Co., L.P. (“Angelo Gordon”), has announced the successful closing of AG Direct Lending Fund III, managed by its middle market direct lending subsidiary, Twin Brook Capital Partners. The fundraise significantly surpassed its initial $2 billion target, reaching over $2.75 billion in equity commitments, marking it as the largest direct lending fund to date for the Firm. This achievement underscores strong investor confidence in Twin Brook Capital Partners and its strategic approach to middle market lending.
AG Direct Lending Fund III will maintain Twin Brook Capital Partners’ established and successful strategy of targeting long-term investment opportunities within the middle market direct lending space. The fund will focus on originating, underwriting, and actively managing a diverse portfolio of floating rate, senior secured loans to middle market companies. A particular emphasis will be placed on providing first lien secured debt to sponsor-backed companies in the lower middle market segment. Twin Brook Capital Partners is known for targeting senior financing solutions up to $200 million, with hold sizes typically ranging from $25 million to $150 million across its platform.
A key differentiator for Twin Brook Capital Partners is its flexible and customized approach to financing. AG Direct Lending Fund III will leverage this strength, offering a suite of financing solutions that can be tailored to meet the specific needs of borrowers. While primarily focused on first lien senior secured debt, this flexibility also allows for opportunistic investments in second lien debt, mezzanine financing, and equity co-investments, further enhancing the fund’s potential for strong returns.
The successful fundraise for AG Direct Lending Fund III attracted significant support from both existing Angelo Gordon investors and a number of new global institutional investors. This diverse investor base highlights the broad appeal of Twin Brook Capital Partners’ investment strategy and its reputation within the institutional investment community.
Trevor Clark, Founder and Managing Partner of Twin Brook Capital Partners, expressed gratitude for the investor support, stating, “I’d like to thank our new and returning investors for their support and confidence in our strategy. The robust reception this Fund received is a testament to our deep bench of talent, differentiated platform, and unique focus on the lower middle market.” Clark further emphasized Twin Brook Capital Partners’ readiness to deploy the capital, noting, “With over $5 billion of buying power from this Fund, our experienced team is well positioned to execute on our strong pipeline of opportunities and continue our tradition of providing leadership, support, and financing solutions to our private equity clients.”
Twin Brook Capital Partners specializes in providing financing to private equity-owned companies with EBITDA ranging from $3 million to $50 million, with a core focus on companies with EBITDA below $25 million. Since its inception in 2014, Twin Brook Capital Partners has built an impressive track record, completing transactions with over 170 borrowers and partnering with more than 75 different private equity firms. The firm currently manages over $7.6 billion in total commitments to its portfolio companies, solidifying its position as a leading player in the middle market direct lending landscape. The previous fund, AG Direct Lending Fund II, closed in 2017 with $2.3 billion in total equity capital, demonstrating the consistent growth and investor interest in Twin Brook Capital Partners’ offerings.
About Twin Brook Capital Partners
Twin Brook Capital Partners is a leading finance company dedicated to providing cash-flow based financing solutions for the middle market private equity community. The firm distinguishes itself through its team of highly experienced and dedicated professionals who possess a long history of working together at prominent middle market lending institutions. Twin Brook Capital Partners offers a flexible product suite, enabling tailored financing solutions for a variety of transaction types, including leveraged buyouts, recapitalizations, add-on acquisitions, and growth capital initiatives. For further information, please visit www.twincp.com.
