TPG raised $51 billion in 2025, a 70% jump from $30 billion in the prior year, as the firm reduced its private equity concentration from 80% to 40% of assets under management since going public. The fundraising surge positions TPG among peers pivoting toward credit and alternative investments amid challenging M&A valuations.
Third Point launched new private credit funds this quarter, joining the rush into direct lending markets. Ancient Financial Holdings acquired F&G Life Re in a strategic deal targeting insurance-linked assets. The transactions underscore how alternative asset managers are expanding beyond traditional buyout strategies.
TPG secured a $12 billion investment management agreement with Jackson, with potential to scale to $20 billion over time, according to Jack Weingart. The mandate provides fee-generating assets without capital deployment, appealing as M&A competition intensifies.
Activist investor Starboard took a position in CarMax, adding to deal activity in the sector. The M&A market remains liquid but competitive, with valuations creating hurdles for new platform investments, Gladstone Investment Corporation noted in its Q3 earnings call.
Portfolio performance shows selective bright spots. Gladstone reported NAV appreciation in investments including Schylling, Old World Christmas, and SFE-SFEG, driven by EBITDA growth rather than multiple expansion. Management expressed improved confidence in non-accrual assets compared to a year ago, citing positive EBITDA generation despite structural issues preventing return to accrual status.
Veloce Media Group shareholders will receive $10 SEGG stock as consideration in an acquisition, with Darryl Eales projecting significant upside based on combined value with pipeline deals. SEGG Media unlocked $20 million in annual revenue by securing controlling interest in Veloce.
The sector faces headwinds from geopolitical tensions affecting energy markets. Firms remain disciplined in underwriting while pursuing add-on acquisitions for existing portfolio companies. The fundraising environment favors diversified managers offering credit, insurance-linked assets, and infrastructure strategies alongside traditional private equity.
Credit fund launches and strategic acquisitions signal the industry's transformation from buyout specialists to multi-strategy platforms.