TPG Inc Q1 2023 Earnings Call and Acquisition of Angelo Gordon Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alexander Bernstein - JPMorgan Chase & Co, Research Division - Analyst : This is Alex Bernstein, on for Ken Worthington. Congrats on the transaction. You mentioned the $55 billion in AUM for Angelo Gordon's credit business. Can you give us any sort of rough breakout around the size of the perhaps CLO, direct lending and structured credit businesses? And REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 15, 2023 / 12:00PM, TPG.OQ - Q1 2023 TPG Inc Earnings Call and Acquisition of Angelo Gordon then maybe in direct lending, specifically, just given the expected big opportunity set there in the market more broadly, can you talk about what portion of value is sponsor and non-sponsor driven? Joshua Sean Baumgarten - Angelo, Gordon & Co., L.P. - Co-CEO & Co-CIO Sure, I'm happy to grab that. So the $55 billion of credit that's broken down broadly that I guess we think about it as pretty significant sectors, about 22.5% is going to be in corporate credit and multi-strategy. The 2 biggest components of that would be about $13 billion in our credit solutions business, about $8 billion in our performing loan, our CLO business. Next to that, as you mentioned, in our lending business, Twin Brook, about $18.5 billion in terms of AUM. And then lastly, from our structured credit business, about $14.2 billion. To your second question on the lending, Twin Brook and all of its AUM is 100% sponsor-backed. So we are serving borrowers in the lower middle market, generally sub $25 million in EBITDA, but all will be sponsor-backed opportunities.