European direct lending attracts assets at Sixth Street

Sixth Street announced the final close of its second fund dedicated to direct lending for middle market and growth companies across Europe, reaching its €1 billion ($1.2 billion) hard cap. Sixth Street Specialty Lending Europe II is actively investing and has already committed to five investments, officials at the $50 billion firm said in an announcement. “We want to thank our limited partners for their long-term trust and support as we continue to successfully execute on our differentiated strategy during these uncertain times,” said Joshua Easterly, co-founder and co-president of Sixth Street. “This capital raise is consistent with our approach of disciplined, patient fund sizing to serve our core client base of middle market companies, coupled with the upsize flexibility from Sixth Street TAO which allows us to commit quickly and in size to larger transactions.” Sixth Street TAO is the firm’s $24 billion platform that invests across the firm’s eight diversified investment strategies, including Sixth Street Specialty Lending. Partner at Sixth Street Michael Griffin said that the firm’s business in Europe keeps growing and the team who leads the special lending strategy in Europe has already transacted in nine countries since expanding the special lending strategy to Europe five years ago. Sixth Street launched Sixth Street Specialty Lending Inc. in North America in 2011. The European strategy initially raised in 2015 had €800 million equity capital and over €3 billion in financings. Sixth Street’s direct lending business in Europe was previously known as TPG Specialty Lending Europe (TSLE). Sixth Street and TPG announced an agreement to become mutually independent last May. “We look forward to continuing to provide financing solutions for our sponsor and direct-to-company partners,” added Griffin. Current investments in Europe include BlueJay Solutions, Easy Software, CDK International, ClearCourse Partnership, Kyriba, Medius, Nintex and Smart Communications. Sixth Street said it also provides life sciences royalty financing, retail asset-backed lending and bespoke debt and equity capital solutions.

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