Sixth Street closes second European direct lending fund

Europe
On the 01/08/21 at 6:04PM

by

Tuba Raqshan

The €1bn hard cap fund is dedicated to direct lending for middle market and growth companies in Europe.
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Sixth Street Specialty Lending Europe II (SLE II) announced its closing after reaching a hard cap of €1bn in equity commitment. The American asset manager, with $50bn assets under management, is actively investing out of the fund and has already committed to five investments.

Joshua Easterly, co-founder and co-president of Sixth Street, said that this capital raise is consistent with their approach of disciplined, patient fund sizing to serve the core client base of middle market companies, coupled with the upsize flexibility from Sixth Street TAO, allowing them to commit quickly and in size to larger transactions. Sixth Street TAO is the firm’s $24bn platform for investing across all of its eight diversified, collaborative investment strategies, including specialty lending.

The firm’s direct lending strategy in Europe has invested in firms such as BluJay Solutions, Easy Software, CDK International, ClearCourse Partnership, Kyriba, Medius, Nintex and Smart Communications. It also provides life sciences royalty financing, retail asset-backed lending and bespoke debt and equity capital solutions.

Sixth Street Specialty Lending, formerly TPG Specialty Lending Europe (TSLE), started in North American in 2011, expanding into Europe in 2015. The SLE II is preceded by SLE I, which had €800m in equity capital and originated over €3bn in financings.