Sixth Street wraps up European direct lending fund

Sixth Street has closed its second European direct lending fund at a hard cap at 1 billion euros.

Sixth Street has closed its second European direct lending fund at a hard cap at 1 billion euros. Sixth Street Specialty Lending Europe II will focus on direct lending to middle-market and growth companies in Europe.

PRESS RELEASE

London – January 8, 2021 – Sixth Street, a leading global investment firm with over $50 billion in assets under management, today announced the final closing of its second fund dedicated to direct lending for middle market and growth companies across Europe. Sixth Street Specialty Lending Europe II (“SLE II”) reached its hard cap with €1 billion in equity commitments. Sixth Street is actively investing out of the fund and has already committed to five investments.

“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 for investing across all of Sixth Street’s eight diversified, collaborative investment strategies, including Sixth Street Specialty Lending.

“Our business in Europe keeps growing as more companies and management teams recognize the breadth and capabilities of the full Sixth Street platform,” said Michael Griffin, Partner at Sixth Street who leads the Specialty Lending team in Europe. “We have transacted in nine countries since expanding our Specialty Lending strategy to Europe five years ago, and we look forward to continuing to provide financing solutions for our sponsor and direct-to-company partners.”

Select current and past representative investments of Sixth Street’s direct lending strategy in Europe include BluJay Solutions, Easy Software, CDK International, ClearCourse Partnership, Kyriba, Medius, Nintex and Smart Communications. Sixth Street also provides life sciences royalty financing, retail asset-backed lending and bespoke debt and equity capital solutions.

Sixth Street launched Sixth Street Specialty Lending, Inc. (NYSE: TSLX) in North America in 2011 and expanded the Specialty Lending platform to Europe in 2015. SLE II follows its predecessor SLE I which had €800 million in equity capital and originated 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 on May 1, 2020.

About Sixth Street
Sixth Street is a global investment firm with over $50 billion in assets under management and committed capital. We operate eight diversified, collaborative investment platforms: TAO, Growth, Opportunities, Specialty Lending, Fundamental Strategies, Infrastructure, Agriculture, and Credit Market Strategies. Our long-term oriented, highly flexible capital base and “One Team” cultural philosophy allow us to invest thematically across sectors, geographies, and asset classes. Founded in 2009, Sixth Street has more than 320 team members including over 145 investment professionals in nine locations around the world. For more information about Sixth Street Specialty Lending in Europe, visit www.sixthstreet.com/sle.