TPG goes public; Twin Brook’s Trevor Clark talks PE-backed loans; Godspeed buys again

TPG starts trading on the NASDAQ and Godspeed acquires Exceptional Software Strategies.

Good morning, Hubsters. MK Flynn here with the Wire.

Going public. TPG is going boldly forward with its $9 billion initial public offering on the Nasdaq this morning – despite a volatile stock market that caused HR and payroll software developer Justworks to delay its debut, which was also scheduled for today. TPG’s is the first big IPO of the year, so all eyes will be watching. The firm priced at $29.50 a share, at the midpoint of its projected range. In TPG’s favor is that publicly-traded PE firms have been performing well recently, with shares of Blackstone, for example, more than doubling over the last year, points out the Wall Street Journal. But in general, it’s been a tough time for IPOs. Companies that went public in traditional debuts last year were down about 17 percent from their IPO prices as of Tuesday, according to Dealogic. Founded in San Francisco in 1992 with $109 billion in AUM, TPG invests across five areas: capital, growth, impact, real estate and market solutions. For more on the firm, see Buyouts’ report earlier in the week that TPG’s fledgling GP-led secondaries group is among a group of high-profile firms participating in a process that will move facilities management services provider BGIS out of an older CCMP Capital fund and into a continuation pool.

Lending landscape. PE Hub’s Q&A series with high-profile private equity professionals continues today with insights from Trevor Clark, founder and managing partner of Twin Brook Capital Partners, the mid-market direct lending subsidiary of Angelo Gordon. We asked Clark for his thoughts on the latest trends in private equity-backed loans. Here are some highlights:

How will rising interest rates affect mid-market loans? “Although rising interest rates have the obvious effect of driving up borrowing costs and reducing the relative attractiveness of debt financing, given where the cost of debt currently stands, we don’t expect near-term interest rate increases to have a meaningful impact on loan demand in 2022,” Clark said.

How are lenders differentiating themselves in these heady PE deal days? “Speed and reliability of execution have become increasingly important as investment banks have compressed the timing of sell-side processes. As has been the case over the last five years, hold size continues to be a key criterion lenders use to differentiate themselves among their peers.” Read the full interview.

Among the deals announced this morning, Godspeed Capital has acquired Exceptional Software Strategies, a provider of information technology to federal agencies, including intelligence and defense. PE Hub spoke recently with Godspeed founder Douglas T Lake Jr about the firm’s investment strategy and its recent acquisition of Varen Technologies, a provider of cybersecurity, software and intelligence services. Check out the interview.

Nominations. We’re looking for your recommendations for rock star women in private equity, mostly on the deal side (which has been historically male-dominated). Deadline to get in your recs is January 17, for publication in March. Our annual Women in Private Equity project comprises 10 mini-profiles of highly regarded women in the industry and a feature story about some burning topic around the status of women in the industry. Check out our past coverage of Women in PE here. Reach Buyouts editor Chris Witkowsky with questions and recommendations at cwitkowsky@buyoutsinsider.com.

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at cwitkowsky@buyoutsinsider.com. Go here for all the rules and regs!

Until tomorrow,

MK