Latest news with #SixthStreet
Mint
24-05-2025
- Business
- Mint
Sixth Street Co-CIO Sees ‘Complacency' in Private Debt
(Bloomberg) -- Sixth Street Partners Co-Chief Investment Officer Josh Easterly warned shifting fundamentals within credit markets present a risk that many investors and money managers are overlooking. 'Private credit markets are relatively complacent,' Easterly said in a Bloomberg Television interview Tuesday, attributing the problem to a mismatch between capital pouring into the sector and valuable opportunities to deploy it. 'Spreads aren't moving as much as they should,' he said. Investors flooding into private debt and credit overall are underestimating the impact of both interest rate and credit spread risk, according to Easterly, who is also co-president of the firm's direct lending platform, Sixth Street Specialty Lending Inc. 'Today's yields are not tomorrow's yields,' he said, adding that as rates are presumably cut in the future, floating-rate credit will return less. Plus, 'we're in an environment of lower growth, which is bad for all investors,' he said. 'Credit is honestly really tricky right now.' Easterly also said Tuesday that Sixth Street sees opportunity in providing rescue debt financing to stressed businesses as growth slows and rates remain higher for longer, but it has to be a little 'complex' to be worth it. 'In regular-way sponsor finance, we don't see value there at the moment,' he said. 'There is a great opportunity on the more complex side.' Easterly has previously emphasized how Sixth Street's direct lending fund is finding opportunities to structure bespoke financings directly to companies. On a May 1 call discussing first-quarter earnings for the direct lending platform, he said that 84% of its new fundings during that period were originated outside the sponsor channel. He cited the fund's largest first-quarter investment, made to Bourque Logistics, as one example. Last month, the co-CIO said in a letter to stakeholders that Sixth Street Partners anticipates a world of lower growth and return on capital, given higher rates, elevated volatility and increased risk premiums. 'In the long arc of the economy, we consider the current upheaval to global trade as more significant than the Covid stimulus and even the global financial crisis,' he wrote, describing that volatility as possibly 'the most significant event' to impact the economy long-term. (Updates to correct company name in 10th paragraph.) More stories like this are available on
Mint
24-05-2025
- Business
- Mint
Sixth Street's Easterly Sees ‘Complacency' in Private Credit
(Bloomberg) -- Sixth Street Partners Co-Chief Investment Officer Josh Easterly warned shifting fundamentals within credit markets present a risk that many investors and money managers are overlooking. 'Private credit markets are relatively complacent,' Easterly said in a Bloomberg Television interview Tuesday, attributing the problem to a mismatch between capital pouring into the sector and valuable opportunities to deploy it. 'Spreads aren't moving as much as they should,' he said. Investors flooding into private debt and credit overall are underestimating the impact of both interest rate and credit spread risk, according to Easterly, who is also co-president of Sixth Street and chief executive officer of the firm's direct lending platform, Sixth Street Specialty Lending Inc. 'Today's yields are not tomorrow's yields,' he said, adding that as rates are presumably cut in the future, floating-rate credit will return less. Plus, 'we're in an environment of lower growth, which is bad for all investors,' he said. 'Credit is honestly really tricky right now.' Easterly also said Tuesday that Sixth Street, which manages more than $100 billion of assets, sees opportunity in providing rescue debt financing to stressed businesses as growth slows and rates remain higher for longer, but it has to be a little 'complex' to be worth it. 'In regular-way sponsor finance, we don't see value there at the moment,' he said. 'There is a great opportunity on the more complex side.' Easterly has previously emphasized how Sixth Street's direct lending fund is finding opportunities to structure bespoke financings directly to companies. On a May 1 call discussing first-quarter earnings for the direct lending platform, he said that 84% of its new fundings during that period were originated outside the sponsor channel. He cited the fund's largest first-quarter investment, made to Bourque Logistics, as one example. Last month, the co-CIO said in a letter to stakeholders that Sixth Street Partners anticipates a world of lower growth and return on capital, given higher rates, elevated volatility and increased risk premiums. 'In the long arc of the economy, we consider the current upheaval to global trade as more significant than the Covid stimulus and even the global financial crisis,' he wrote, describing that volatility as possibly 'the most significant event' to impact the economy long-term. (Updates title in fourth paragraph. A previous version corrected company name in 10th paragraph.) More stories like this are available on
Axios
24-05-2025
- Business
- Axios
Awardco raises $165 million Series B
Awardco announced Tuesday it has raised a $165 million Series B, valuing the employee rewards platform at more than $1 billion. Why it matters: It's another HR software business that's been able to raise money in an otherwise uncertain market. Rippling raised $450 million earlier this month, bringing the HR-software company's valuation to almost $17 billion. Zoom in: Sixth Street and Spectrum Equity joined General Catalyst and Ryan Smith as investors in Awardco. The company closed a $65 million Series A in 2021 at an $835 million post-money valuation, according to PitchBook. How it works: Awardco is a service that allows employees to be rewarded through points that can then be used like cash to shop online. Awardco touts five million users and the corporate clients AT&T, Pacific Life, and Adobe.
Boston Globe
05-05-2025
- Business
- Boston Globe
Private equity firms chase profits, not championships. So why does one want to buy the Celtics?
Advertisement But the social capital that comes with ownership — well, that's priceless. Related : 'Owning a sports team, or even a piece of it, is a crowning achievement,' said Ben Shields, a senior lecturer at the MIT Sloan School of Management who teaches and researches the sports industry. 'It's the ultimate vanity asset." Once the exclusive domain of ultra-wealthy individuals like Robert Kraft (Patriots) and John Henry (Red Sox) — faces you recognize when the TV cameras pan to the owners' boxes — pro-sports ownership is evolving from a family business into a sophisticated global enterprise. And when teams can fetch $6.1 billion, that opens the doors to institutional investors with access to far more money than any one rich guy. Since 2020, when the National Basketball Association first allowed private equity money, about a third of its 30 teams have brought institutional investors into their ownership groups. Private equity firms may be faceless, but their deep pockets give the teams the wherewithal to do expensive stuff like improve or even build a new arena. Advertisement At $6.1 billion, the value of the Celtics has increased 17-fold since the team was last sold more than two decades ago. Barry Chin/Globe Staff Still, for fans and players, the specter of PE ownership can spark worry. There's a reason why they're known as the barbarians at the gate with a reputation for cutting costs, stripping companies for parts, and cashing out for a tidy profit. Just look at what happened to Catholic hospital chain Caritas Christi (later known as Steward Health Care) after it was bought by So far, private equity firms view sports team assets differently. Sixth Street considers itself a silent partner and plans on holding its Celtics stake for many years to come, according to a person briefed on the matter. It's among a cadre of private equity players, along with these days. Sixth Street has a 20 percent stake in the San Antonio Spurs, while Arctos is invested in five teams including the Golden State Warriors and Memphis Grizzlies, and Blue Owl holds interests in the Atlanta Hawks, Sacramento Kings, and Charlotte Hornets. (Arctos also holds a minority stake in Fenway Sports Group, the parent company for the Red Sox whose principal owner, John Henry, who also owns the Globe.) The Advertisement In other words, the PE guys won't be calling the shots on which players to trade or coaches to hire. The Grousbeck family, the Celtics' lead owner, The Grousbeck family, which organized the purchase of the Celtics for $360 million in 2002, is now set to sell the team for a price that is 17 times higher and If approved by the NBA Board of Governors, the sale will close this summer. But there has been r But let me call a foul here. Multiple sources who have been briefed on the matter describe the deal as 'oversubscribed.' That's the precise word current Celtics' lead owner Wyc Grousbeck used in Advertisement What it means is that Chisholm has more money than ownership slots available. The NBA limits ownership structure to one lead partner, plus up to 24 limited partners. He has been making calls to see if current Celtics shareholders want to return, and his group is finalizing its list of investors, according to people briefed on the matter. Expect a mix of old and new investors. Rather than being cash poor, Chisholm is probably figuring out who's in and who's out. Boston Celtics majority owners Wyc Grousbeck, right, and Steve Pagliuca on the sideline of a game earlier this season. Danielle Parhizkaran/Globe Staff One who's already in is ownership as a partner and vice chairman of football's Miami Dolphins. So how much will Chisholm put in? Per league rules, as lead partner he must have a stake of at least 15 percent. Chisholm expects to be above that threshold and be the single largest investor, according to a person briefed on the matter. As for Sixth Street's share, while the firm committed at least $1 billion — roughly one-sixth of the deal — its stake will likely shrink because there's so much interest, several people said. It seems like investors have championship fever with the Celtics advancing to the second round of the playoffs. After all, who doesn't want be part of a team that could well win its second-straight NBA title this summer? Advertisement It's too early to tell if private equity firms will be good stewards of storied local franchises. For most traditional sports owners, winning comes first, while private equity might have other goals. Still, it's a good sign that Sixth Street has committed to be long-term investors in Real Madrid and Barcelona, two of Europe's most celebrated soccer clubs. Let's hope private equity firms have found a winning formula that's good for them — and fans and players too. Shirley Leung is a Business columnist. She can be reached at
Business Wire
01-05-2025
- Business
- Business Wire
Sixth Street Specialty Lending, Inc. Reports First Quarter 2025 Earnings Results; Declares a Second Quarter Base Dividend Per Share of $0.46, and a First Quarter Supplemental Dividend Per Share of $0.06
NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the 'Company') today reported financial results for the first quarter ended March 31, 2025. Please view a printable version of the 2025 First Quarter Results. Conference Call Information: A conference call to discuss the Company's financial results will be held at 8:30 a.m. Eastern Time on May 1, 2025. The conference call will be broadcast live in listen-only mode on the Investor Resources section of TSLX's website at The Events & Presentations page of the Investor Resources section of TSLX's website also includes a slide presentation that complements the Earnings Conference Call. Please visit the website to test your connection before the webcast. Research analysts who wish to participate in the conference call must first register at Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. Replay Information: A recorded version will be available under the same webcast link ( following the conclusion of the conference call. Please direct any questions regarding the conference call to TSLX Investor Relations, IRTSLX@ About Sixth Street Specialty Lending Sixth Street Specialty Lending is a specialty finance company focused on lending to middle-market companies. The Company seeks to generate current income primarily in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. The Company has elected to be regulated as a business development company, or a BDC, under the Investment Company Act of 1940 and the rules and regulations promulgated thereunder. The Company is externally managed by Sixth Street Specialty Lending Advisers, LLC, an affiliate of Sixth Street and a Securities and Exchange Commission ('SEC') registered investment adviser. The Company leverages the deep investment, sector, and operating resources of Sixth Street, a global investment firm with over $100 billion in assets under management and committed capital. For more information, visit the Company's website at About Sixth Street Sixth Street is a global investment firm with over $100 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 650 team members including over 280 investment professionals around the world. For more information, visit or follow Sixth Street on LinkedIn. Forward-Looking Statements Statements included herein may constitute 'forward-looking statements,' within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which relate to future events or the Company's future performance or financial condition. These forward-looking statements can be identified by the use of forward-looking terminology, such as 'outlook,' 'indicator,' 'believes,' 'expects,' 'potential,' 'continues,' 'may,' 'can,' 'will,' 'should,' 'seeks,' 'approximately,' 'predicts,' 'intends,' 'plans,' 'estimates,' 'anticipates', 'confident,' 'conviction,' 'identified' or the negative versions of these words or other comparable words thereof. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company's filings with the SEC, which are accessible on the SEC's website at Except as otherwise required by federal securities laws, the Company assumes no obligation to update any such forward-looking statements, whether as a result of new information, future developments or otherwise. Non-GAAP Financial Measures Adjusted net investment income and adjusted net income are each non-GAAP financial measures, which represent net investment income and net income, respectively, in each case less the impact of accrued capital gains incentive fee expenses. The Company believes that adjusted net investment income and adjusted net income provide useful information to investors regarding the fundamental earnings power of the business, and these figures are used by the Company to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
