TPG Twin Brook Capital Partners, the middle-market direct lending platform of TPG, and Coller Capital, the world’s largest dedicated private market secondaries manager, have closed a US$3 billion credit-focused continuation vehicle, marking the largest completed transaction of its kind to date in the private credit secondaries market.

The continuation vehicle was established to acquire a diversified portfolio of floating-rate, senior secured, sponsor-backed loans from TPG Twin Brook’s 2016 and 2018 vintage funds.

The vehicle supports long-term alignment between TPG Twin Brook and its limited partner ( LP ) base by providing existing investors with an attractive liquidity option, and offering new investors access to a diversified and high-quality pool of private credit assets alongside a long-tenured manager.

It also reflects increasing institutional demand for credit secondaries, with transaction volume in the category accelerating as the broader private credit market continues to mature and expand.

The transaction supports, the companies note, long-term alignment between TPG Twin Brook and its LP base while enabling continued active management of its highly diversified and performing portfolio of North American middle-market borrowers.

Campbell Lutyens served as financial adviser on the transaction. Legal counsel for Coller was provided by Debevoise & Plimpton. Ropes & Gray acted for TPG Twin Brook. Deutsche Bank provided financing for the transaction.

“The successful close of our first continuation fund underscores the strength of our partnership with Coller and our shared commitment to maximizing the value of high-performing assets while delivering creative liquidity solutions to our investors,” says Trevor Clark, TPG Twin Brook’s founder and managing partner. “The strong support we received validates our flexible, solutions-based approach, and we look forward to continuing to manage these loans through the next phase of their lifecycle.”

Michael Schad, Coller partner and its head of credit secondaries, adds: “This is a high-quality, diversified portfolio managed by one of the most consistent credit platforms in the market.”