Why the private credit wave? 12%+ returns with priority payments. Real-time example: $30m investment in TPG’s credit fund.
Consultant recommendation...
"Cliffwater has completed its investment due diligence and operational due diligence and recommends investments of up to $30 million..."
"The TPG AG Asset Based Credit Evergreen Fund, L.P. will invest in private, asset-backed opportunities across the consumer, real asset, and specialty finance landscape including but not limited to credit card, auto, residential and commercial real estate, trade finance and small business receivables."
"AG will provide bespoke financing facilities to lenders or non-bank specialty lenders who need capital for their origination business as well as source whole loan performing portfolios from banks who are currently constrained by regulatory capital and risk accounting requirements."
"ABCE will seek to construct a portfolio of 40-60 investments, deploying between $25 million to $75 million per transaction."
"The Fund will target a net 12-15% return with an 8% annual income distribution."
COMMENTS