TPG Cuts Private Equity Allocation to 45% of AUM, Raises $20B in Credit Strategies

TPG reduced private equity exposure from 80% to 45% of assets under management while raising more than $20 billion in credit strategies.¹ The investment management agreement with Jackson begins at $12 billion and can scale to $20 billion over time.²

Third Point launched a new private credit pooled fund as institutional investors seek higher-yielding alternatives to traditional equity buyouts.³ The credit market expansion comes as managers navigate macroeconomic headwinds including geopolitical tensions affecting oil markets and persistent inflation pressures.

Private equity firms continue executing deals despite the strategic pivot. Recent transactions include bids for Papa Johns and the F&G Life Re acquisition, demonstrating liquidity remains available for quality assets. F&G signals a shift toward 25% fee-based earnings by 2028 while expanding AUM and capital flexibility.⁴

Gladstone Investment Corporation reported the M&A market remains liquid and competitive with challenging valuations, but the firm maintains disciplined underwriting for both new platform investments and add-on acquisitions.⁵ The company began the prior fiscal year with $55.3 million in spillover income, approximately $1.50 per share, supporting regular monthly distributions and a $0.54 per share supplemental distribution paid in June.

Management at Gladstone expressed improved confidence in non-accrual portfolio names compared to a year ago, citing positive EBITDA generation despite ongoing structural issues before returning to accrual status.⁶ The firm continues pursuing add-on acquisitions for existing portfolio companies while evaluating new platform opportunities.

The private credit expansion reflects institutional demand for yield and portfolio diversification. Managers are repositioning capital allocation strategies to capture spreads in direct lending markets while maintaining selective exposure to traditional buyout opportunities. The dual-track approach allows firms to deploy capital across market cycles while managing risk through asset class diversification.