TPG has closed more than $6.2bn for its latest private credit fund, surpassing a $4.5bn target and doubling the size of the previous vehicle, as investors continue to channel capital into bespoke lending strategies that support private equity-owned companies, according to Bloomberg. 

The Credit Solutions Fund will provide privately negotiated, highly structured debt to public and private borrowers, including sponsor-backed businesses facing refinancing pressure from higher rates and large maturity walls. Ryan Mollett, TPG’s global head of credit solutions, said demand for flexible capital is rising as traditional financing options remain constrained. “Demand for our capital right now is immense,” he said.

TPG plans to structure loans against specific assets, carved-out business units, or unencumbered collateral such as inventory and receivables. Some loans may be held on or off a borrower’s balance sheet. Coupons typically fall in the high single-digit to low double-digit range.

The firm is leaning further into private markets, which Mollett described as “far more attractive” on a risk-return basis. The strategy will focus mainly on senior secured deals and seeks to avoid the traditional distressed model. “We look to create win-win situations. That stands in direct contrast to classic distressed strategies that focus on buying debt at a discount and taking ownership. That’s not what we do,” he said.

TPG, which manages about $286bn, acquired Angelo Gordon in 2023 for $2.7bn to expand its credit and real estate lending platform. Recent transactions include a $1bn term loan for Altice USA, arranged alongside Goldman Sachs, and an investment in xAI.

Limited partners are increasingly requesting co-investment access, and TPG expects more deal sharing among large lenders capable of originating at scale. The new fund launch underscores how private credit has become central to refinancing activity across sponsor-backed portfolios as borrowing costs remain elevated.

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