A similar situation for the data centers that we are engaged in with — in Northern Virginia which is sort of the core data centers. Hard to enter the market without either having to pay too much or be able to do it with enough capital deployed. So this gave us the opportunity to do that. We’re working on another industrial deal that we hopefully signed very soon that is in North America that we also think is sort of kind of core-to-core as it relates to industrial. So, we think these are great risk-reward opportunities now as a result of pricing. And they’re just the general dislocation. So I think we’ll continue to be focused on that. On the Angelo Gordon side, the Angelo Gordon business does a number of different things for us as a combined effort.
One, as that I mentioned in my remarks, was geographical penetration that we haven’t historically had. So the Asia business as an example, it’s very hard to enter market. And Angelo Gordon has been in that market for sometime now, so kind of a compelling opportunity for us to be able to continue to grow that. And I think our footprint as a firm in Asia on the PE side and AG’s footprint on the real estate side, I think provides an opportunity to potentially continue to scale that. We continue to build that. On the net lease side, I think net lease is a business that we actually looked at prior to the Angelo Gordon acquisition. And in this environment, given what’s gone on with the regional banks and the lack of financing availability, net leasing in a lot of respects is a financing product for corporates that are looking to use assets in order to get cost-effective financing.
So, we think this is actually a pretty good environment to try to build on what is the core of our net lease strategy in AG. So you’ll hear more from us about it but that’s our perspective.
Operator: The next question comes from Luke Mason with BNP Paribas. Please go ahead.
Luke Mason: Yes. Thanks for taking my question guys, and appreciate as more detail next week but my question is on Gordon’s FRE margin, which was 23% in H1. Just wondering how quickly you think that can scale up. I think you mentioned previously the mid to high-20s on longer time is running more than the FRE margin of enjoy going shouldn’t be in the 40s like a TPG stand-alone? Thank you.
Jack Weingart: Yes. Good question. We will talk more about this next week. But one of the things we really liked about the Angel Gordon platform. John talked about the breadth of it and how important that is for things like the insurance market. But having the multi-strategy coverage of virtually every aspect of private credit was super important to us as we thought about the right platform to grow from. Now, it’s also expensive to support all that, to build an operating platform to support each of those businesses and they have fully built out scalable operating platforms to support each of those businesses. So now, as we come together as a combined firm, find additional synergies and ability to operate better together and scale their businesses, we absolutely expect that we will get their margin.
Our combined — really what we’re focused on now is our combined margin. And getting — beginning the same margin expansion opportunity that we saw for TPG on a stand-alone basis we now see for the combined business. And I think your comments over time that their credit platform, if it were a stand-alone company and scale should get into the 40s is absolutely correct.
Operator: This concludes the Q&A portion of today’s call. I would now like to turn the call back over to Gary Stein for any additional or closing remarks.
Gary Stein: Great. Thanks Angela, and thanks everyone for joining us today for taking on such a busy day, appreciate it. And if you have any follow-up questions please feel free to circle back to us. Otherwise we’ll look forward to speaking to you again next quarter. Thank you.
Jack Weingart: Thanks, everyone.
Operator: This concludes today’s TPG Third Quarter 2023 Earnings Call and webcast. You may disconnect your line at this time, and have a wonderful day.
