Key Takeaways
- • Sixth Street reached the hard cap and final close of its second European direct lending fund, Sixth Street Specialty Lending Europe II ("SLE II"), with €1 billion in equity commitments.
- • The firm has already committed to five investments out of SLE II, and says it is actively investing.
- • SLE II follows its predecessor SLE I, which had €800 million in equity capital and originated over €3 billion in financings.
- • The fund is part of Sixth Street's broader platform of over $50 billion in AUM, with Sixth Street TAO, a $24 billion platform, providing upsize flexibility for larger deals.
- • The European business, formerly TPG Specialty Lending Europe, has transacted in nine countries since the strategy expanded to Europe five years ago.
Summary
Sixth Street, a global investment firm with over $50 billion in assets under management, announced the final closing of Sixth Street Specialty Lending Europe II ("SLE II"), a fund dedicated to direct lending to middle market and growth companies across Europe. According to the firm, the fund reached its hard cap with €1 billion in equity commitments.
Sixth Street said it is actively investing out of the fund and has already committed to five investments. Select current and past representative investments of the European direct lending strategy include BluJay Solutions, Easy Software, CDK International, ClearCourse Partnership, Kyriba, Medius, Nintex and Smart Communications.
Joshua Easterly, Co-Founder and Co-President of Sixth Street, described the raise as consistent with the firm's approach of disciplined, patient fund sizing for its core middle market client base. He pointed to the upsize flexibility of Sixth Street TAO, the firm's $24 billion platform spanning its eight diversified investment strategies, including Specialty Lending, which allows the firm to commit quickly and in size to larger transactions.
Michael Griffin, Partner who leads the Specialty Lending team in Europe, said the business keeps growing as more companies and management teams recognize the breadth of the platform. He noted the team has transacted in nine countries since expanding the Specialty Lending strategy to Europe five years ago.
SLE II follows its predecessor, SLE I, which had €800 million in equity capital and originated more than €3 billion in financings. The European business was previously known as TPG Specialty Lending Europe (TSLE). Sixth Street and TPG announced an agreement to become mutually independent on May 1, 2020. Sixth Street also provides life sciences royalty financing, retail asset-backed lending and bespoke debt and equity capital solutions. The firm launched Sixth Street Specialty Lending, Inc. (NYSE: TSLX) in North America in 2011.
Sixth Street said it is actively investing out of the fund and has already committed to five investments. Select current and past representative investments of the European direct lending strategy include BluJay Solutions, Easy Software, CDK International, ClearCourse Partnership, Kyriba, Medius, Nintex and Smart Communications.
Joshua Easterly, Co-Founder and Co-President of Sixth Street, described the raise as consistent with the firm's approach of disciplined, patient fund sizing for its core middle market client base. He pointed to the upsize flexibility of Sixth Street TAO, the firm's $24 billion platform spanning its eight diversified investment strategies, including Specialty Lending, which allows the firm to commit quickly and in size to larger transactions.
Michael Griffin, Partner who leads the Specialty Lending team in Europe, said the business keeps growing as more companies and management teams recognize the breadth of the platform. He noted the team has transacted in nine countries since expanding the Specialty Lending strategy to Europe five years ago.
SLE II follows its predecessor, SLE I, which had €800 million in equity capital and originated more than €3 billion in financings. The European business was previously known as TPG Specialty Lending Europe (TSLE). Sixth Street and TPG announced an agreement to become mutually independent on May 1, 2020. Sixth Street also provides life sciences royalty financing, retail asset-backed lending and bespoke debt and equity capital solutions. The firm launched Sixth Street Specialty Lending, Inc. (NYSE: TSLX) in North America in 2011.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.