Sixth Street Partners

Sixth Street Partners
Company typePrivate
IndustryInvestment Company
Founded2009; 15 years ago (2009)
Founders
  • Alan Waxman
  • Clint Kollar
  • David Stiepleman
  • Vijay Mohan
  • Joshua Easterly
  • Michael Muscolino
  • Matt Dillard
  • Bornah Moghbel
  • Steven Pluss
HeadquartersLetterman Digital Arts Center
San Francisco, California, U.S.
Number of locations
New York, London, Hong Kong, Dallas, Houston, Luxembourg, Melbourne, Boston
Key people
Alan Waxman (CEO)[1]
AUM$75 billion (2024)[1]
Websitesixthstreet.com

Sixth Street (formerly known as TSSP) is a global investment firm with around $75 billion in assets under management. 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]

Notable investments

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FC Barcelona

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In July 2022, Sixth Street acquired rights to 25% of FC Barcelona's income from LaLigaSportsTV 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

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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

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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

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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

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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

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

Airtrunk

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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

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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

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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]

Bay FC

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On April 4, 2023, the American National Women's Soccer League awarded one of its two planned 2024 expansion teams to a Bay Area group at a reported $53 million expansion fee. The expansion announcement confirmed the involvement of Sixth Street Partners as the Bay Area group's lead investor.[17][18] Sixth Street CEO Alan Waxman and former United States women's national soccer team and professional club players Brandi Chastain, Leslie Osborne, Danielle Slaton, and Aly Wagner were announced as the club's founding board members. The club would be the first professional sports team in the United States to have an institutional investor as a majority owner, in contrast to rules established by other United States sports leagues that restricted or prohibited such ownership.[19] NWSL commissioner Jessica Berman noted that the investment did not have a target hold period, and was funded from Sixth Street Tao Partners, a balance sheet fund[20] with no requirement to be liquidated, which the league intended to treat like an individual owner with a large net worth.[21] The team's name, Bay FC, and logo were announced on June 1, 2023.[22]

Publicly traded Business Development Company (BDC)   

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Sixth Street Specialty Lending (NYSE: TSLX)

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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.[23] It has originated $16.9 billion in total financings since its inception.[24]

Strategic partnerships

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Concrete Rose Capital

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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.[25]

Dyal Capital Partners

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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.[26] 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.[27][28]

History

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Sixth Street was established in 2009 by a group of former Goldman Sachs colleagues led by Sixth Street CEO Alan Waxman.[29] Sixth Street was formed to recreate the type of proprietary investing platform the group managed at Goldman.[30]

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.[31] TPG retained a passive minority ownership stake in Sixth Street, and the two firms became formally independent in May 2020.[32][33]

References

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  1. ^ a b Basak, Basak (February 27, 2024). "Sixth Street CEO Ready to Bet Big on Battered Property Sector". Bloomberg News. Archived from the original on February 27, 2024.
  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.{{cite web}}: CS1 maint: multiple names: authors list (link)
  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.{{cite web}}: CS1 maint: multiple names: authors list (link)
  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. ^ Ingemi, Marisa (April 4, 2023). "Bay Area lands NWSL 2024 expansion team with largest investment in women's soccer". San Francisco Chronicle. Retrieved April 19, 2023.
  18. ^ Toonkel, Jessica; Bachman, Rachel (January 27, 2023). "NWSL Set to Expand With Record-Setting $50 Million Franchise Fees". Wall Street Journal. Retrieved April 19, 2023.
  19. ^ Germano, Sara (April 4, 2023). "Sixth Street commits $125mn to buy new US women's football club". Financial Times. Retrieved April 19, 2023.
  20. ^ Falconer, Kirk (May 25, 2022). "Sixth Street to replenish $1bn of massive Tao evergreen pool". Buyout Insider. Retrieved April 19, 2023.
  21. ^ Scott Soshnick, Eben Novy-Williams (April 11, 2023). "NWSL Commissioner Jessica Berman Talks Record Expansion, Private Equity". Sporticast (Podcast). Spotify. Retrieved April 19, 2023.
  22. ^ "Bay FC Is Born: National Women's Soccer League Club Representing the Bay Area Unveils Name and Identity to Unite Northern California" (Press release). Bay FC. June 1, 2023. Retrieved June 1, 2023.
  23. ^ "TPG Specialty Lending - About Us & Value Proposition". May 28, 2019.
  24. ^ "TPG Specialty Lending - Investor Resources". May 28, 2019.
  25. ^ Capital, Concrete Rose (2020-07-11). "Concrete Rose Capital". Medium. Retrieved 2020-07-14.
  26. ^ TSSP. "TPG Sixth Street Partners (TSSP) Announces Completion of Strategic Minority Investment by Dyal Capital Partners". www.prnewswire.com (Press release). Retrieved 2019-05-28.
  27. ^ 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.
  28. ^ Natarajan, Sridhar; Basak, Sonali (16 February 2021). "Owl Rock-Dyal Merger Mired in $600 Million Sixth Street Dispute". Bloomberg News. Retrieved 30 March 2021.
  29. ^ "PA SERS Private Credit Investment Recommendation" (PDF).
  30. ^ 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.
  31. ^ 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.
  32. ^ "TPG, Sixth Street to End Partnership in Bid to Fuel Dealmaking". Bloomberg.com. 28 January 2020. Retrieved 2020-07-14.
  33. ^ "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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