Twin Brook Capital Partners has raised approximately $2.3 billion in total equity capital for its AG Direct Lending Fund II. The firm’s second direct lending fund will source and underwrite long-term investments in middle-market businesses.
The fund will actively manage a diversified portfolio of middle-market, floating rate, and senior secured loans with a focus on first lien secured debt. The fund primarily seeks senior financing opportunities up to $200 million. AG Direct Lending Fund II has a suite of flexible and customizable financing capabilities that allow for “opportunistic” investments in second lien, mezzanine, unitranche and equity co-investments.
“We are pleased with the strong reception that our second fund received from both new and returning limited partners, allowing us to close the Fund well above our target,” states Twin Brook co-heads Trevor Clark and Chris Williams. “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 U.S. middle market.”
Twin Brook is the middle-market direct lending arm of Angelo, Gordon & Co. The Chicago-based firm focuses on loans to private equity-owned companies with Ebitda between $3 million and $50 million. Launched in the fourth quarter of 2014, the firm has closed approximately 110 transactions and provided nearly $3.2 billion in arranged commitments to date.
Other middle-market fund raises include: Madison Capital raising its sixth CLO fund as the fundraising climate remains stable for collateralized loan obligation investment vehicles; Antares Capital closing the firm’s first CLO fund in May with nearly $2.1 billion in backing; the Carlyle Group (Nasdaq: CG) raising $1.2 billion in capital across two CLO funds this year; and Trinitas Capital Management LLC raking in $717 million for the firm’s sixth CLO.