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In a blockbuster shake-up for the private credit world, TPG Inc. revealed Tuesday that its middle-market direct lending arm, TPG Twin Brook Capital Partners, has closed a $3 billion credit-focused continuation fund—a transaction the parties are calling the largest of its kind in the private secondaries market. The deal was crafted with legal heavyweights Ropes & Gray LLP advising TPG and Debevoise & Plimpton LLP representing Coller Capital.

The newly formed continuation vehicle will scoop up a portfolio of floating-rate, senior secured, sponsor-backed loans from TPG Twin Brook’s 2016 and 2018 vintage funds. This move provides liquidity for existing investors while opening the door for new investors to access a diversified trove of private credit assets managed by a long-tenured and battle-tested manager.

Strategic Partnership with Staying Power

“This first continuation fund’s success highlights our powerful partnership with Coller Capital and our dedication to delivering liquidity solutions while maximizing the value of high-performing assets,” said Trevor Clark, founder and managing partner of TPG Twin Brook. “The strong backing from investors validates our solutions-based approach and sets the stage for managing these loans through their next chapter.”

For Coller Capital, the appeal was clear. “We’re proud to back TPG Twin Brook in a milestone transaction for the private credit secondaries market,” said Michael Schad, Coller’s partner and head of credit secondaries. “It’s a high-quality, diversified portfolio managed by one of the most consistent credit platforms in the business, and we’re committed to its long-term success with strategic capital.”

Aligning Interests and Extending Reach

The continuation fund aligns TPG Twin Brook with its limited partner base while ensuring active management of a portfolio spread across North American middle-market borrowers. Investors—both new and existing—gain access to a portfolio that blends stability with upside potential in an evolving credit market.

A One-Two Punch for TPG

The announcement comes just 24 hours after San Francisco-based TPG, represented by Cleary Gottlieb Steen & Hamilton LLP, disclosed the close of TPG Growth VI, its sixth and largest growth fund, pulling in $4.8 billion—a 35% jump over its predecessor.

Behind the Legal Curtains

The Debevoise team for Coller was led by M&A partner Kevin Schmidt and finance partner Ramya Tiller, with support from investment management partners Gavin Anderson and Jane Engelhardt and tax partner Michael Bolotin.

The Ropes & Gray team advising TPG Twin Brook featured asset management partners Laura Hirst, Laurel FitzPatrick, and Katie Waite, plus tax partner Adam Greenwood.

For TPG’s growth fund, Cleary Gottlieb’s lineup included investment funds partners Maurice Gindi and Jamal Fulton; tax partner Meyer Fedida; ERISA partner Elizabeth Dyer; finance partners Amy Shapiro and Anna Kogan; and CFIUS partners Chase Kaniecki and Samuel Chang.