Sixth Street's investment DNA was forged in the Goldman Sachs Special Situations Group (SSG), a highly successful principal investing unit. The core philosophy inherited from SSG is the ability to "unitize risk and return," a framework for comparing disparate investment opportunities across asset classes, geographies, and capital structures to find the best relative value.
The firm is architected around a massive, flexible $30 billion fund called TAL, which sits across all its investment platforms. This structure allows Sixth Street to maintain modestly sized, strategy-specific funds while retaining the capacity to write billion-dollar checks for the largest, most compelling deals.
Sixth Street operates on the principle that investment themes have a limited shelf life, typically 12 to 36 months. The firm constantly evaluates the macro environment to identify and act on new themes, such as partnering with large asset originators or capitalizing on dislocations like the one Airbnb faced during the COVID-19 pandemic.
A key part of Sixth Street's strategy involves forming deep, often long-term partnerships with leading companies, sports franchises, and asset originators. The firm specializes in creating bespoke, "whiteboard" capital solutions, such as the convertible debt for Spotify or the stadium financing for Real Madrid, tailored to the specific needs of its partners.
Alan Waxman places immense emphasis on maintaining a firm culture rooted in curiosity, humility, and a long-term, "investor-first" mindset. The firm's hiring and operational philosophy is guided by principles like the "no a-holes" rule and has resulted in zero partner turnover.
Keep pulling the thread on Alan Waxman.