TPG slashed its private equity exposure from 80% to 45% of assets under management while raising more than $20 billion in credit strategies.1 The shift reflects a broader industry pivot as major asset managers reposition portfolios amid market uncertainty.
Third Point entered the private credit market with a new pooled fund, joining the migration of capital from traditional buyout strategies to lending platforms.2 The credit expansion occurs despite persistent inflation and geopolitical pressures affecting oil markets.
TPG's Jackson investment management agreement starts at $12 billion and could scale to $20 billion over time, according to Jack Weingart.1 The agreement represents a significant expansion of the firm's fee-generating credit operations as it reduces reliance on carried interest from PE investments.
Private equity deal flow remains active despite the strategic shift. Firms are pursuing acquisitions including a bid for Papa John's and the F&G Life Re transaction, demonstrating continued appetite for buyout opportunities.3 F&G signals a move toward 25% fee-based earnings by 2028 while expanding assets under management and capital flexibility.
Gladstone Investment Corporation executives said the M&A market remains "liquid and competitive" with challenging valuations, though the firm maintains disciplined underwriting for both platform investments and add-ons to existing portfolio companies.4 Management expressed improved confidence in non-accrual portfolio names compared to a year ago, citing positive EBITDA generation despite structural issues.
The industry transformation comes as asset managers seek more stable fee streams from credit portfolios versus the volatile carried interest typical of traditional PE. Private credit markets offer quarterly management fees on deployed capital, contrasting with PE's backend-loaded compensation structure tied to exit events.
Market participants note the credit expansion raises questions about asset quality and loan performance if economic conditions deteriorate. The rapid growth of private credit assets under management has sparked debate about potential crisis risks versus normal market evolution.5
Sources:
1 Yahoo Finance, "Gladstone Investment Q3 Earnings Call Highlights" (February 04, 2026)
2 Yahoo Finance, "TPG Calls 2025 a “Breakout Year” at BofA Conference, Targets Another $50B+ Fundraising Year" (February 11, 2026)
3 Source, "SEGG Media Unlocks $20M+ in Annual Revenue by Finalizing Terms to Secure Controlling Interest in Veloce Media Group" (February 13, 2026)
4 Gladstone Investment Corporation, via Yahoo Finance
5 Gladstone Investment Corporation, via Yahoo Finance
6 Gladstone Investment Corporation, via Yahoo Finance
7 Gladstone Investment Corporation, via Yahoo Finance
8 Gladstone Investment Corporation, via Yahoo Finance
9 Jack Weingart, via Yahoo Finance
10 Jack Weingart, via Yahoo Finance
11 Jack Weingart, via Yahoo Finance
12 Jack Weingart, via Yahoo Finance
13 Jack Weingart, via Yahoo Finance
14 Jack Weingart, via Yahoo Finance
15 Jack Weingart, via Yahoo Finance
16 Jack Weingart, via Yahoo Finance
17 Jack Weingart, via Yahoo Finance
18 Jack Weingart, via Yahoo Finance
19 Jack Weingart, via Yahoo Finance
20 Jack Weingart, via Yahoo Finance
21 Jack Weingart, via Yahoo Finance
22 Darryl Eales, via analysis
23 Darryl Eales, via analysis
