SAN FRANCISCO: Joshua Easterly, who co-founded and supported build Sixth Street Partners into a more than US$125bil private capital manager, is retiring from the San Francisco-based firm.
Easterly, 49, will step down as co-president and co-chief investment officer (CIO) effective June 30, according to an internal memo seen by Bloomberg.
Co-CIO Julian Salisbury and co-founder Matt Dillard were named co-presidents alongside David Stiepleman. Dillard and co-founder Bornah Moghbel will join Salisbury and chief executive officer Alan Waxman as co-CIOs.
Easterly, who will serve as partner emeritus, stated in a memo to Sixth Street employees that the relocate was a “deeply personal decision”.
“My father passed away a little over a year ago – somewhat unexpected and complicated for me,” he stated, adding that he has three daughters and wants “to fill any actual or perceived deficit I have with them. I want to start compounding and avoid any ‘drawdowns’.”
He stated he was leaving the firm “positioned extremely well,” noting that “I am leaving a large portion of my financial future in everybody’s hands at Sixth Street.”
Easterly’s retirement marks a shift for Sixth Street, which was founded in 2009 by Waxman and several others, including members of his team from Goldman Sachs Group Inc’s special situations group. At the time, the firm was called TPG Opportunities Partners. It has since grown into a multi-strategy private capital firm.
Easterly, who played a central role in expanding the firm’s platform, has stood out among leaders in the US$1.8 trillion private credit indusattempt for his candid remarks about the challenges ahead – some of which are now flaring up across the market.
He recently warned that returns in private credit were going to be “a lot lower” than they applyd to be, given tight credit spreads and the potential for more interest rate cuts, and that investors are due for some disappointment.
“With significant new demand from other channels (retail and wealth), it’s clear to me that, in general, alternative returns are going to be pressured,” he stated. — Bloomberg
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