KBRA Assigns Ratings to TPG Twin Brook Capital Income Fund's $225 Million Senior Unsecured Notes Due 2029 and 2031
KBRA assigns ratings of BBB to TPG Twin Brook Capital Income Fund's ("TCAP" or "the company") $50 million, 6.67% senior unsecured notes due June 2029 and its $175 million, 7.03% senior unsecured notes due June 2031. The rating Outlook is Stable. Proceeds will be used for the repayment of secured debt.
Key Credit Considerations
The ratings and Outlook are supported by TCAP’s ties to TPG Angelo Gordon’s ~$100+ billion credit investment platform, with ~$30+ billion of direct lending within the TPG Twin Brook Capital Partners middle market lending platform that allows for SEC exemptive relief to co-invest with TPG Angelo Gordon affiliated funds. TPG Angelo Gordon provides the company with robust deal sourcing, a strong sponsor network, and extensive banking relationships. Further, TCAP has a solid management team, which has a long track record working within the private debt markets with each member of senior management having 15+ years of industry experience.
The rating is also supported by TCAP’s growing and well-diversified ~$4.5 billion investment portfolio comprised almost entirely of senior secured first lien loans (~97.8%) across 40+ sectors, primarily in the lower middle market (median EBITDA <$25 million). Portfolio companies are largely sponsor-backed with meaningful equity cushions with low LTVs. Health Care Providers and Services (25.7%), Media (8.1%), and Trading Companies and Distributors (7.9%) were the leading portfolio sectors at the end of 1Q26. That said, we view the portfolio as relatively unseasoned, which, in part, explains the very low level of non-accrual investments at just 0.2% of investments at cost and 0.1% at fair value. As the portfolio seasons, we expect there will be some negative credit migration. That said, the performance of the broader credit platform supports our view that TCAP’s credit quality will remain in line with expectations for the current rating level.
