TPG Specialty Lending (TSLX) saw its stock price drop sharply by 5.07% during intraday trading on Friday. The significant decline came as investors reacted to news about the company's strategic partnership.
The business development company announced the formation of a $600 million structured credit joint venture with Carlyle Secured Lending. The partnership, called Structured Credit Partners JV, will focus on investing in broadly syndicated first lien senior secured loans using long-term, investment grade CLO debt for financing. The joint venture will be equally governed by Carlyle and Sixth Street, with material decisions requiring unanimous approval.
Market participants appeared concerned about the implications of this capital commitment and the strategic shift toward structured credit investments. The joint venture represents a significant new direction for TSLX, potentially affecting its risk profile and capital allocation strategy.