Twin Brook Has Big Fund II Close

Twin Brook Capital Partners, the middle market direct lending subsidiary of Angelo, Gordon & Co., has held a final close of AG Direct Lending Fund II with total capital commitments of $1.6 billion, markedly above the $1.0 billion target. Including separately managed accounts, the total capital raised was $2.3 billion.

Twin Brook’s focus is on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. Since its founding in the fourth quarter of 2014, Twin Brook has closed 110 transactions and provided total arranged commitments of over $3.2 billion.  The firm raised its first fund, AG Direct Lending Fund I, in 2016 with $850 million in total equity capital between the fund and separately managed accounts. The firm is led by Trevor Clark and Christopher Williams and is based in Chicago (www.twincp.com).

Fund II will target senior financing opportunities up to $200 million with hold sizes across the Twin Brook platform ranging from $25 million up to $100 million. Investments in second liens, mezzanine, unitranche and equity co-investments will also be considered.

“We are pleased with the strong reception that our second fund received from both new and returning limited partners, allowing us to close the our new fund well above target,” said Messrs. Clark and Williams in a released statement. “With $4 billion of buying power and over $5.6 billion of total committed capital, we are well positioned to continue to serve our borrowers and private equity clients investing in the US middle market.  Our highly experienced team, deep focus on the lower end of the middle market and differentiated platform have generated a strong pipeline of opportunities, and we are excited to put this fresh capital to work.”

The firm has been a very active lender. Highlights of recently closed transactions include:

  • Twin Brook provided debt and equity capital to back Inverness Graham’s July 2017 acquisition of SwipeClock, a provider of cloud-based workforce management software that is used for time and attendance tracking, absence management, workforce performance measurement, and regulatory compliance.
  • Twin Brook served as Sole Lead Arranger and Administrative Agent of the first lien senior secured financing for Audax Private Equity’s July 2017 acquisition of EnviroVac, a provider of industrial cleaning and maintenance services. The company utilizes high-pressure washing and vacuum equipment to service companies operating in the pulp and paper, chemical, steel, oil and gas, and power industries.
  • Twin Brook served as Sole Lead Arranger and Administrative Agent of the $80.5 million first lien senior secured financing for L2 Capital Partners’ May 2017 acquisition of Oracle Elevator Company. Oracle Elevator is a one of the larger, independent, and non-union providers of elevator maintenance, repair, and modernization services across all major brands of equipment.
  • Twin Brook served as Sole Lead Arranger and Administrative Agent on $30 million in financing to back High Road Capital Partners’ May 2017 buy of Storage Battery Systems, an assembler and distributor of branded, rechargeable industrial batteries and test equipment used in warehousing and logistics, and standby and uninterruptible power supply applications.

Angelo, Gordon & Co. is an alternative investor with a focus on credit, real estate, private equity, and other strategies. The firm, founded in November 1988, currently manages approximately $28 billion in capital and has over 420 employees, including 160 investment professionals. Angelo, Gordon & Co. is headquartered in New York with additional offices in San Francisco, Los Angeles, Chicago, Houston, London, Amsterdam, Hong Kong, Seoul, Frankfurt and Tokyo (www.angelogordon.com).

© 2017 Private Equity Professional | July 21, 2017

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