Published On: Wed, Aug 26th, 2015

TPG Joins CIT to Form Commercial-Lending Venture

The new entity, Strategic Credit Partners, will have a target size of $500 million and will provide senior secured financing to companies in a variety of industries.

L-R : David Bonderman and Jim Coulter Cannes -  MGM Platoon Party

 

TPG Capital, the global private equity lead by David Bonderman and Jim Coulter, announced its Special Situations Partners (TSSP) and credit platform with over $12 billion of assets under management, will join with CIT Group Inc. to form a commercial-lending venture.

The new entity, Strategic Credit Partners, will have a target size of $500 million and will provide senior secured financing to companies in a variety of industries throughout the United States, including communications, healthcare, information services and technology, industrials and restaurants.

CIT Asset Management LLC will serve as Administrative Agent to the joint venture. CIT, the provider of lending and leasing services, emerged from a 2009 bankruptcy.

In July, regulators approved CIT’s $3.4 billion takeover of OneWest Bank, a Pasadena, California-based lender backed by billionaires John Paulson and George Soros.

“Our efforts to support the financing needs of our customers will be greatly enhanced through this new relationship, ” Jim Hudak, president of CIT Corporate Finance, said in the statement. “This joint venture will further advance our efforts to grow our commercial lending franchise.”

Bloomberg reports: CIT rose 2.2 percent to $42.94 at 9:32 a.m. in New York trading. The company had slipped 12 percent this year through Tuesday.
TPG manages about $75 billion in assets. Special Situations Partners
had more than $12 billion of assets under management as of June 30 and works on public and private investments through primary originations, secondary market purchases and restructurings.

Deutsche Bank AG is the financial adviser to CIT on the deal, and Dechert LLP provided legal counsel. TPG Special Situations Partners used Cleary Gottlieb Steen & Hamilton LLP.

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