TPG Twin Brook $3 billion private credit Continuation Vehicle (CV)

The Challenge

TPG Twin Brook held a portfolio of senior, sponsor-backed loans from its 2016 and 2018 vintage funds that remained performing and fundamentally sound but were approaching maturity of the funds’ traditional lifecycle.

Existing limited partners (LPs) in these funds sought liquidity options to exit their investments after nearly a decade, while the loans themselves still offered meaningful value and yield. The challenge was to provide an attractive liquidity solution for these LPs while allowing the manager to retain control of and continue to generate returns from the assets in a maturing private credit market.

The Problem

Traditional private credit fund structures typically have finite lives, making it difficult to balance the needs of investors wanting liquidity with the manager’s long-term confidence in the portfolio’s performance.

Selling the loan portfolio outright would disrupt ongoing management and potential future appreciation.

On the other hand, forcing investors to hold through to fund expiry risked dissatisfaction and potential misalignment.

The market was also seeing increased institutional demand for private credit secondaries but lacked large-scale, structured solutions that aligned incentives and preserved asset value in middle-market senior loans.

The Solution

TPG Twin Brook recapitalised the performing portfolio into a $3 billion continuation vehicle (CV) led by Coller Capital, the world’s largest private market secondaries manager.

This CV acquired the diversified portfolio of floating-rate, senior secured loans from the legacy funds, providing current LPs liquidity and the option to exit while maintaining exposure for new investors.

It also enabled TPG Twin Brook to continue managing the loans with long-term capital aligned to the assets' remaining lifecycle, thus improving investor alignment and portfolio management beyond typical private credit fund terms.

Legal, financing, and advisory partners were engaged to structure and execute this bespoke solution, setting a market milestone for private credit secondaries.

The Benefit

This innovation demonstrated the evolving sophistication of private credit markets and how continuation vehicles can creatively resolve portfolio management and investor liquidity tensions in private asset classes.