Sixth Street Partners

Sixth Street (formerly known as TSSP) is a global investment firm with $60 billion in assets under management.[1] The firm operates nine investment platforms across its growth investing, adjacencies, direct lending, fundamental public strategies, infrastructure, special situations, agriculture and par liquid credit businesses.[2] Sixth Street invests in the equity and debt of public and private companies, acquires real estate, finances infrastructure projects, and provides start-up capital to new businesses. Sixth Street has been noted in the financial media for the unusual structure of its largest fund, which is open-ended and able to hold longer-term investments.[3]

Sixth Street Partners
TypePrivate
IndustryInvestment Company
Founded2009 (2009)
FounderAlan Waxman
Clint Kollar
David Stiepleman
Vijay Mohan
Joshua Easterly
Michael Muscolino
Matt Dillard
Bornah Moghbel
Steven Pluss
HeadquartersSan Francisco, California, U.S.
Number of locations
New York, London, Hong Kong, Dallas, Houston, Luxembourg, Melbourne, Boston
AUM$60 billion (March 2022)
Websitesixthstreet.com

Notable investments

FC Barcelona

In July 2022, Sixth Street acquired rights to 25% of FC Barcelona's income from LaLiga TV over the next 25 years. The deal was worth €207.5 million for the initial 10% stake and an additional €310 million for the other 15%.[4][5]

San Antonio Spurs

In June 2021, Sixth Street acquired a 20% stake in the San Antonio Spurs. They were joined by Michael Dell, who acquired a 10% stake.[6]

Caris Life Sciences

Sixth Street led an $830 million growth-equity round for precision oncology company Caris Life Sciences in May 2021. Sixth Street had previously invested in the company in 2018 and 2020.[7][8]

Legends

In January 2021, Sixth Street acquired a majority interest in Legends Hospitality, a sports and live entertainment services company co-founded by affiliates of the New York Yankees and Dallas Cowboys.[9][10]

Talcott Resolution

In January 2021, Sixth Street acquired Talcott Resolution, the former life insurance and annuity business of The Hartford, for more than $2 billion.[11]

Airbnb

In Spring 2020, Sixth Street co-led a $1 billion equity and debt investment in online travel marketplace Airbnb.[12]

Airtrunk

In 2017, Sixth Street and Goldman Sachs invested equity and provided debt financing for the creation of Sydney-based AirTrunk, one of the leading data center businesses in the Asia Pacific region.[13] In April 2020, AirTrunk was acquired by Maquarie Infrastructure and Real Assets (MIRA) for A$3 billion.[14]

Spotify

In the spring of 2016, the firm co-led an investment consortium that invested $1 billion in music-streaming service Spotify Ltd. through debt convertible to equity.[15]

Credit Suisse

In May 2016, Sixth Street purchased a $1.27 billion portfolio of debt and equity investments related to 170 different companies from Credit Suisse. The transaction's complexity and short turn-around time reportedly required a team of nearly 50 Sixth Street staff members to underwrite.[16]

Publicly traded Business Development Company (BDC)   

Sixth Street Specialty Lending (NYSE: TSLX)

Sixth Street Specialty Lending (NYSE: TSLX) is a specialty finance company that invests in and lends to U.S. middle market companies. TSLX is managed by Sixth Street Specialty Lending Advisers, LLC, an SEC-registered investment adviser that is a part of Sixth Street. TSLX was created in 2011 and listed on the New York Stock Exchange in 2014.[17] It has originated $16.9 billion in total financings since its inception.[18]

Strategic partnerships

Concrete Rose Capital

Sixth Street is a founding strategic partner of Concrete Rose Capital, an early stage investment platform focused on capitalizing underrepresented founders, investing in companies serving underrepresented consumers, and helping early stage companies build diverse teams.[19]

Dyal Capital Partners

In April 2017, Dyal Capital Partners made a strategic minority investment valuing Sixth Street at $3.5 billion. All proceeds from the transaction were reinvested into Sixth Street's business.[20] In February 2021, Sixth Street filed a lawsuit against Dyal, claiming that a competitor will own a stake of the firm after Dyal merges with Owl Rock and goes public.[21][22]

History

Sixth Street was established in 2009 by a group of former Goldman Sachs colleagues led by Sixth Street CEO Alan Waxman.[23] Sixth Street was formed to recreate the type of proprietary investing platform the group managed at Goldman.[24]

Sixth Street was formed as a strategic partnership with TPG, which initially made $2 billion of their fund commitments available for investment by the Sixth Street team. While TPG had a minority stake in Sixth Street, the firms operated autonomously.[25] TPG retained a passive minority ownership stake in Sixth Street, and the two firms became formally independent in May 2020.[26][27]

References
  1. "Sixth Street Closes Second Fund for Direct Lending in Europe at €1 Billion Hard Cap". businesswire. Retrieved 2021-01-08.
  2. Jarzemsky, Matt (2017-04-11). "Dyal Capital to Buy 10% Stake in TPG Special Situations Partners". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-05-28.
  3. Gottfried, Miriam (2020-08-16). "WSJ News Exclusive | Sixth Street Partners Amasses One of the Largest Private-Capital Funds". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-05-26.
  4. Bunker, Ted (2022-07-22). "Sixth Street Partners Adds to Media Rights Deal With FC Barcelona Soccer Club". The Wall Street Journal. Archived from the original on 2022-07-23.
  5. Pathak, Manasi (2022-07-22). "Barcelona sell further 15% of LaLiga TV rights to Sixth Street". Reuters. Archived from the original on 2022-07-22.
  6. "San Antonio Spurs add Sixth Street and Michael Dell as investors". SportsPro. 2021-06-22. Retrieved 2021-10-20.
  7. Gottfried, Miriam (2021-05-11). "WSJ News Exclusive | Caris Life Sciences Gets $830 Million Investment From Sixth Street-Led Group". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-05-26.
  8. "Caris Life Sciences' massive new capital raise gives it a valuation of nearly $8 billion". Dallas News. 2021-05-11. Retrieved 2021-05-26.
  9. Gottfried, Miriam (2021-01-11). "WSJ News Exclusive | Sixth Street Partners Nears Deal for Majority Stake in Legends Hospitality Group". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-05-26.
  10. Soshnick, Eben Novy-Williams,Brendan Coffey,Scott (2021-01-11). "Legends Valued at $1.35 Billion on Sixth Street's Control of Hospitality Joint Venture". Sportico.com. Retrieved 2021-05-26.
  11. Scism, Leslie (2021-01-20). "WSJ News Exclusive | Sixth Street Partners to Acquire Life Insurance Business Talcott Resolution for $2 Billion". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-05-26.
  12. Batchelor, Deirdre Bosa,Laura (2020-04-06). "Airbnb is raising $1 billion amid fallout from coronanvirus". CNBC. Retrieved 2020-06-01.
  13. "AirTrunk Secures Funding from Goldman Sachs and TSSP". AirTrunk. 2017-02-12. Retrieved 2020-07-14.
  14. Dorbian, Iris (2020-04-08). "MIRA acquires AirTrunk from Goldman Sachs and Sixth Street". PE Hub. Retrieved 2020-06-01.
  15. "TPG Credit Arm Chasing More Spotify-Like Deals with Goldman Hire". Bloomberg.com. 27 March 2018. Retrieved 2020-06-01.
  16. Jarzemsky, Matt (2016-05-04). "Credit Suisse Slashes Debt Trading With Private-Equity Deal". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-05-28.
  17. "TPG Specialty Lending - About Us & Value Proposition". May 28, 2019.
  18. "TPG Specialty Lending - Investor Resources". May 28, 2019.
  19. Capital, Concrete Rose (2020-07-11). "Concrete Rose Capital". Medium. Retrieved 2020-07-14.
  20. TSSP. "TPG Sixth Street Partners (TSSP) Announces Completion of Strategic Minority Investment by Dyal Capital Partners". www.prnewswire.com. Retrieved 2019-05-28.
  21. Segal, Julie (February 19, 2021). "Inside the Explosive Lawsuit That Started a Legal War Between Sixth Street and Dyal". Institutional Investor. Retrieved 30 March 2021.
  22. Natarajan, Sridhar; Basak, Sonali (16 February 2021). "Owl Rock-Dyal Merger Mired in $600 Million Sixth Street Dispute". Bloomberg News. Retrieved 30 March 2021.
  23. "PA SERS Private Credit Investment Recommendation" (PDF).
  24. Lat, David (16 June 2020). "How To Go In-House, And How To Excel Once You're There: An Interview With David Stiepleman". Above the Law. Retrieved 2020-07-14.
  25. Jarzemsky, Matt (2017-04-11). "Dyal Capital to Buy 10% Stake in TPG Special Situations Partners". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-06-01.
  26. "TPG, Sixth Street to End Partnership in Bid to Fuel Dealmaking". Bloomberg.com. 28 January 2020. Retrieved 2020-07-14.
  27. "TPG and Sixth Street Partners Announce Completion of Agreement to Become Independent, Unaffiliated Businesses". www.businesswire.com. 2020-05-01. Retrieved 2020-06-01.
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