About
TCAP is a non-traded BDC that seeks to make private credit opportunities in the lower middle market accessible to individual investors via TPG Angelo Gordon’s established middle market direct lending business, Twin Brook Capital Partners. TCAP seeks to generate attractive, consistent total returns in a tax-efficient perpetual-life BDC structure that, in our view, offers an appealing alternative to traditional fixed income instruments.
Approach
In line with TPG Angelo Gordon’s differentiated middle market direct lending strategy, which is informed by the Twin Brook team’s wealth of experience in the space, TCAP focuses on investing in loans to U.S. private equity-backed companies in the middle market, with an emphasis on lower middle market businesses, which we generally define as those with $25 million of EBITDA and below.
Strategy
TCAP focuses on loans to companies in what we believe are non-cyclical industries with strong historical performance, while also concentrating on opportunities that are senior in the capital structure and that have appropriate lender protections in place. We believe this strategy supports our ability to mitigate risk, minimize volatility, and perform consistently across varying market conditions.
Fund Features
Selectivity
With an average transaction approval rate of less than 4%, and an average loan-to-value ratio of 39% at closing, TPG Twin Brook’s underwriters are highly selective in the loans they choose to pursue.
Senior Loans
TCAP focuses on privately negotiated, senior secured loans that are well protected by collateral and covenants.
Transparency
TCAP publishes quarterly and annual statements via 10-Qs and 10-Ks.
Public Company Reporting Transparency
Unlike private funds, TCAP publishes quarterly and annual statements via 10-Qs and 10-Ks.
Tax-Efficient Structure
As a BDC and as a regulated investment company (“RIC”), TCAP will not be subject to entity-level taxes on distributed income. Additional benefits may apply for non-U.S. investors.1
Fully Funded
Investors’ shares in TCAP will be fully funded interests at the time of investment; this allows shareholders to be invested immediately and means investors will never be subject to capital calls. This is in contrast to certain private funds that have drawdown structures with capital calls.
Liquidity
TCAP aims to provide investors with monthly distributions and a quarterly share repurchase program. Distributions and repurchases are not guaranteed. Additional subscriptions can also be submitted on a monthly basis.2
Expected Liquidity
TCAP aims to provide investors with monthly distributions and a quarterly share repurchase program. Distributions and repurchases are not guaranteed. Additional subscriptions can also be submitted on a monthly basis.
Distribution and Repurchases
TCAP aims to provide investors with monthly distributions and a quarterly share repurchase program. Distributions and repurchases are not guaranteed. Additional subscriptions can also be submitted on a monthly basis.2
1 Blocks effectively connected income and unrelated business taxable income.
2 Quarterly tender offers are expected but not guaranteed. The Board of Trustees may amend, suspend, or terminate these share repurchases in its discretion.
Our Results
Learn MoreKey Terms
Structure
Non-traded business development company (BDC); perpetually offered
Investment Adviser
AGTB Fund Manager, LLC, an affiliate of Angelo, Gordon & Co., L.P. (“TPG Angelo Gordon”)
Maximum Offering3
$5 billion
Primary Focus
U.S. senior secured private loans
Management Fee
1.25% per annum on net assets
Incentive Fee
- 12.5% of net investment income (subject to 5% hurdle rate and catch-up) paid quarterly
- 12.5% of realized gains net of realized and unrealized losses
Subscriptions4
Monthly at NAV
Distributions
Monthly
Note: There is no assurance we will pay distributions in any particular amount, if at all. Any distributions we make will be at the discretion of our Board of Trustees. TCAP may fund distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and we have no limits on the amounts we may pay from such sources.
Expected Liquidity
- Quarterly repurchases at NAV as of each quarter end
- Quarterly repurchases are limited to 5.0% of aggregate shares outstanding (either by number of shares or aggregate NAV) as of the close of the previous calendar quarter
Note: Quarterly tender offers are expected but not guaranteed. The Board of Trustees may amend, suspend, or terminate these share repurchases in its discretion.
Exchange Listing
No planned liquidity event or exchange listing
Investor Eligibility5
- A net worth of at least $250,000, or
- A gross annual income of at least $70,000 and a net worth of at least $70,000
Note: Certain states may have higher suitability requirements. Please refer to TCAP’s Prospectus.
Share Classes & Fees
Class S: Minimum Investment: $2,500 | Servicing Fee: 0.85% | Max Sales Commissions: 3.50%
Class D: Minimum Investment: $2,500 | Servicing Fee: 0.25% | Max Sales Commissions: 1.50%
Class I: Minimum Investment: $1,000,000 | Servicing Fee: 0.00% | Max Sales Commissions: 0.00%
Tax Reporting
Form 1099
The summary of terms provided herein is qualified in its entirety by TCAP’s Prospectus. Fees can vary materially. Subject to change without notice, shown for illustrative purposes only.
3 This is the amount currently registered with the SEC. We may register additional shares in the future.
4 Offered on an ongoing basis. Subscription orders for purchases will be accepted on the first day of each month. Subscription requests must be received at least five business days before the first day of each month and NAV will be available generally 20 business days after the effective date of the purchase.
5 Certain States and select broker-dealers may have different suitability standards, may not offer all share classes, and/or may offer the Fund at a higher minimum initial investment than $2,500.
FAQ
What is TCAP?
AG Twin Brook Capital Income Fund, or TCAP, is a Delaware statutory trust and a non-diversified, closed-end management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940. TCAP is externally managed by its Adviser, AGTB Fund Manager, LLC (the “Adviser”), an affiliate of TPG Angelo Gordon. In making investment decisions on behalf of TCAP, the Adviser will utilize and rely on the experience, insights, professional connections, and expertise of individuals at TPG Angelo Gordon, including Twin Brook Capital Partners, LLC.
What is a business development company, or BDC?
A BDC is a special closed-end investment vehicle that is regulated under the Investment Company Act of 1940 and used to facilitate capital formation by smaller U.S. companies, typically private companies and small public firms that have low trading volumes. BDCs are required to invest at least 70% of their assets in “qualifying assets,” which are generally defined as private U.S. companies or public U.S. companies with less than $250 million in market capitalization. A BDC may also invest up to 30% of its portfolio in “non-qualifying” portfolio investments.
Who are TPG Angelo Gordon and Twin Brook?
Founded in 1988, Angelo, Gordon & Co., L.P. (“TPG Angelo Gordon”) is a diversified credit and real estate investing platform within TPG. The platform currently manages approximately $76 billion* across a broad range of credit and real estate strategies. TPG Angelo Gordon has over 700 employees, including more than 230 investment professionals, across offices in the U.S., Europe, and Asia.
Twin Brook is TPG Angelo Gordon’s middle market direct lending business. TPG Twin Brook is a middle market, sponsor-backed, directly originated, cash flow-oriented direct lender, and TPG Twin Brook’s borrowers are predominantly lower middle market companies, which we generally define as those that generate $25 million of EBITDA and below. Operating under the Twin Brook banner allows TPG Angelo Gordon’s middle market direct lending team to highlight its distinguishing capabilities to investors as well as the private equity community, where Twin Brook sources opportunities, and – given its lower middle market focus – points to the specialized nature of the business.
*TPG Angelo Gordon’s currently stated AUM of approximately $76 billion as of September 30, 2023 reflects fund-level asset-related leverage. Prior to May 15, 2023, TPG Angelo Gordon calculated its AUM as net assets under management excluding leverage, which resulted in TPG Angelo Gordon AUM of approximately $53 billion last reported as of December 31, 2022. The difference reflects a change in TPG Angelo Gordon’s AUM calculation methodology and not any material change to TPG Angelo Gordon’s investment advisory business. For a description of the factors TPG Angelo Gordon considers when calculating AUM, please see the disclosure linked here.
What type of investments do you intend to make?
We believe that TCAP’s investment strategy represents a differentiated approach to middle market direct lending and seeks to provide investors with consistent, downside-protected returns. We seek to invest primarily in privately originated, floating rate, first lien, senior secured loans to private equity-backed U.S. middle market companies, with an emphasis on those with EBITDA of $25 million and below – which we generally define as lower middle market businesses. TCAP may also invest opportunistically in senior secured stretch and unitranche facilities, second lien loans, mezzanine and subordinated debt, and equity investments, either directly or through acquisitions in the secondary market.
Why focus on the lower middle market?
We believe there are many factors that make lending to private equity-backed companies in the lower middle market attractive. We believe the competitive landscape is favorable, as we’ve observed that there are fewer established lenders exclusively focused on this segment – typically providing for greater pricing power and more lender-friendly terms, which supports our ability to seek to produce consistent, stable returns. Additionally, many of the senior members of the TPG Twin Brook team have been focused on this part of the market for 20+ years and have established deep, long-standing relationships with the private equity sponsor community operating in this segment. As such, TPG Twin Brook is often a partner of choice for these sponsors and their portfolio companies’ lending needs, providing for a strong, high-quality flow of deals for the TPG Twin Brook team to evaluate and creating a barrier to entry for new market entrants.
Does TCAP pay distributions?
TCAP will seek to pay regular monthly distributions. Any distributions will be at the discretion of TCAP’s Board of Trustees, who will consider, among other factors, TCAP’s earnings, cash flow, capital needs, and general financial condition. Distributions are not guaranteed. TCAP will operate under regulated investment company (“RIC”) requirements and, as such, will generally be required to distribute at least 90% of its net income to shareholders annually. Distributions may be funded through sources other than TCAP’s cash flow, including the sale of assets, borrowings or return of capital. For further information regarding the source of TCAP’s distributions, see the Performance page of our website.
Team Members6
Credit Originated7
Average Experience Across Senior Team8
6 Employee statistics as of December 2023.
7 Data since TPG Twin Brook’s first investment in March 2015, as of December 2023.
8 Reflects average years of experience for Managing Directors, Partners, and Senior Partners at TPG Twin Brook Capital Partners as of December 2023.
Meet the Team Behind TCAP
Trevor Clark
Chief Executive Officer & President, TCAP
Trevor Clark
Chief Executive Officer & President, TCAP
Trevor Clark serves as Chief Executive Officer, President, Chairman of the Board, and a trustee of AG Twin Brook Capital Income Fund (TCAP). Trevor joined TPG Angelo Gordon in 2014 to establish its middle market direct lending business, Twin Brook Capital Partners. Trevor also served as Chairman of the Board, Chief Executive Officer, and President of AG Twin Brook BDC, Inc. from May 2019 until its merger with TCAP in July 2023. Additionally, Trevor previously served as Chairman of the Board, Chief Executive Officer, and President of AGTB Private BDC, TCAP’s predecessor. Trevor oversees overall operations of the middle market direct lending business and leads its fundraising efforts.
Prior to joining TPG Angelo Gordon, Trevor was a co-founder and C.E.O. of Madison Capital Funding LLC, a wholly owned subsidiary of New York Life Investments where he oversaw all operational and strategic activities of the middle market lending operation. Prior to forming Madison Capital, Trevor held various positions in loan underwriting and origination at Antares Capital, GE Capital, and Bank of America. He holds a B.A. degree from the University of Iowa, Iowa City and an M.B.A. degree from Indiana University, Bloomington.
Terry Walters
Chief Financial Officer & Treasurer, TCAP
Terry Walters
Chief Financial Officer & Treasurer, TCAP
Terry Walters serves as Chief Financial Officer and Treasurer of AG Twin Brook Capital Income Fund (TCAP). Terry joined TPG Angelo Gordon in 2019 and is a Chief Financial Officer in the platform’s middle market direct lending business, Twin Brook Capital Partners. Terry also served as a director, Chief Financial Officer, and Treasurer of AG Twin Brook BDC, Inc. from May 2021 until its merger with TCAP in July 2023. Additionally, Terry served as a trustee, Chief Financial Officer, and Treasurer of AGTB Private BDC, TCAP’s predecessor. Prior to joining TPG Angelo Gordon, Terry spent eight years in various roles with Victory Park Capital Advisors and Vitalogy Capital Partners. Prior to that, Terry worked at Citadel Group’s fund administrator, Omnium, as well as Ernst & Young LLP. Terry holds a B.A. in accountancy and finance from Augustana College and a M.Acc. degree from the University of Iowa. He is a Certified Public Accountant (inactive).
Jenny B. Neslin
General Counsel, Secretary & Interim Chief Compliance Officer, TCAP
Jenny B. Neslin
General Counsel, Secretary & Interim Chief Compliance Officer, TCAP
Jenny B. Neslin joined TPG Angelo Gordon’s legal team as a Managing Director in April 2021 and serves as TCAP’s General Counsel, Secretary, and Interim Chief Compliance Officer. Jenny also serves as General Counsel and Secretary of AG Mortgage Investment Trust, Inc. (NYSE: MITT), positions she has held since April 2021, and served as General Counsel and Secretary of AG Twin Brook BDC, Inc. from November 2021 until its merger with TCAP in July 2023. Additionally, Jenny served as General Counsel and Secretary of AGTB Private BDC, TCAP’s predecessor. Prior to joining TPG Angelo Gordon, Jenny was Managing Director and Deputy General Counsel at Colony Capital, Inc. (NYSE: CLNY) (“Colony Capital”), which is now known as DigitalBridge Group, Inc. (NYSE: DBRG) from July 2013 to April 2021. At Colony Capital, she was responsible for legal oversight of Colony Capital’s capital markets activities (including public and private equity and debt offerings), ongoing disclosure and reporting obligations under U.S. federal securities laws and corporate governance matters. In addition, from August 2015 to January 2018, Jenny served as General Counsel and Secretary for each of NorthStar Real Estate Income Trust, Inc. (“NS Income”) and NorthStar Real Estate Income II, Inc. (“NS Income II”). NS Income and NS Income II were public, non-traded real estate investment trusts managed by NorthStar Asset Management Group Inc. (“NorthStar”), until NorthStar’s merger with Colony Capital in January 2017. Prior to joining an affiliate of NorthStar in July 2013, Jenny was an associate in the Capital Markets group at Clifford Chance US LLP, where she primarily advised REITs and investment banks in public and private capital markets transactions. Jenny holds a Bachelor of Music in Music Business from New York University and a Juris Doctor from Benjamin N. Cardozo School of Law at Yeshiva University.
Drew Guyette
Co-Chief Credit Officer & Senior Partner, TPG Twin Brook Capital Partners
Drew Guyette
Co-Chief Credit Officer & Senior Partner, TPG Twin Brook Capital Partners
Drew Guyette joined TPG Angelo Gordon in 2015 and is a Senior Partner and Co-Chief Credit Officer in the platform’s middle market direct lending business, Twin Brook Capital Partners. He is responsible for overseeing the underwriting, credit, and portfolio management functions of the middle market direct lending business. Prior to joining TPG Angelo Gordon, Drew had been with Madison Capital, a wholly owned subsidiary of New York Life Investments, since 2007. Drew’s primary responsibilities at Madison Capital included structuring, underwriting, negotiating, and managing client relationships, where he focused on generalist and technology transactions with middle market private equity sponsors. Additionally, Drew managed one of Madison Capital’s Underwriting Teams of professionals. Prior to joining Madison Capital, Drew held a variety of positions at MB Financial Bank, N.A., including underwriting, portfolio management, and new business development. Drew received a B.S. in Finance from the University of Illinois, Urbana-Champaign.
Kim Trick
Co-Chief Credit Officer, Head of Underwriting & Partner, TPG Twin Brook Capital Partners
Kim Trick
Co-Chief Credit Officer, Head of Underwriting & Partner, TPG Twin Brook Capital Partners
Kim Trick joined TPG Angelo Gordon in 2016 and is a Partner, Co-Chief Credit Officer, and Head of Underwriting in the platform’s middle market direct lending business, Twin Brook Capital Partners. Kim is responsible for overseeing the underwriting, credit, and portfolio management functions of the middle market direct lending business, and she is active in the team’s recruitment efforts. Prior to joining TPG Angelo Gordon, Kim worked for Chase Capital, a division of JPMorgan Chase, since 2008. Kim’s responsibilities at Chase Capital included originating, evaluating, structuring, executing, and managing senior and junior cash flow loans to privately-owned and sponsor-owned middle market companies across a broad range of industries throughout North America. Prior to joining Chase Capital, Kim worked at JPMorgan’s Investment Bank. Kim received her B.B.A. in Finance, cum laude, from the University of Notre Dame.
Rich Christensen
Senior Partner, TPG Twin Brook Capital Partners
Rich Christensen
Senior Partner, TPG Twin Brook Capital Partners
Rich Christensen joined TPG Angelo Gordon in 2015 and is a Senior Partner in the platform’s middle market direct lending business, Twin Brook Capital Partners. He is primarily responsible for overseeing the business’s generalist origination activity. Prior to joining TPG Angelo Gordon, Rich had been with Madison Capital Funding LLC, a wholly owned subsidiary of New York Life Investments, since its initial founding in 2001. Rich’s primary responsibilities at Madison Capital included client relationship management and new business development, where he focused on originating and structuring transactions with middle market private equity sponsors. Prior to joining Madison Capital, Rich held various positions in loan underwriting and portfolio management at Bank of America’s Commercial Finance Group (formerly NationsCredit Commercial Corp.) and First Source Financial, Inc. Rich received a B.S. in Finance from the University of Arkansas and an M.B.A. and M.A. degree in Accounting from the University of Iowa.
Grant Haggard
Senior Partner, TPG Twin Brook Capital Partners
Grant Haggard
Senior Partner, TPG Twin Brook Capital Partners
Grant Haggard joined TPG Angelo Gordon in 2015 and is a Senior Partner in the platform’s middle market direct lending business, Twin Brook Capital Partners. He is primarily responsible for overseeing the middle market direct lending business’s generalist origination activity. Prior to joining TPG Angelo Gordon, Grant had been with Ares Management LLC for the previous year. Prior to Ares, Grant was with Madison Capital Funding LLC, a wholly owned subsidiary of New York Life Investors, from 2008 to 2014. Grant’s primary responsibilities at Ares and Madison Capital included client relationship management and new business development, where he focused on originating and structuring transactions with middle market private equity sponsors. Prior to joining Madison Capital, Grant held various positions in originations, loan underwriting, and portfolio management at Linsalata Capital Partners and Antares Capital Corporation. Grant received a B.S. in Accounting and Finance from the University of Cincinnati and an M.B.A. from the Kellogg School of Management at Northwestern University.
Faraaz Kamran
Senior Partner, TPG Twin Brook Capital Partners
Faraaz Kamran
Senior Partner, TPG Twin Brook Capital Partners
Faraaz Kamran joined TPG Angelo Gordon in 2016 and is a Senior Partner in the platform’s middle market direct lending business, Twin Brook Capital Partners. Faraaz focuses on the middle market direct lending business’s healthcare portfolio. Prior to joining TPG Angelo Gordon, Faraaz was with Madison Capital Funding LLC, a wholly owned subsidiary of New York Life Investors. Faraaz founded Madison Capital’s healthcare group and built a team of ten professionals. Faraaz’s responsibilities included building and managing the healthcare silo as well as client relationship management and new business development, where he focused on originating and structuring transactions with middle market private equity sponsors. Prior to joining Madison Capital, Faraaz held various positions in originations, loan underwriting, and portfolio management at Dresdner Kleinwort Wasserstein and American National Bank. Faraaz received a B.A. in Economics from the University of Illinois at Urbana- Champaign and an M.B.A. from the Kellogg School of Management at Northwestern University.