Alan Waxman

What's the opportunity set?

They kept raising larger and larger funds, and we didn't want to have that pressure.

and this is getting to Tal, we want to design our architecture at Sixth Street, which is different than any GP out there, at least the ones that I know, as an investor-first architecture.

And what we did is, although we have 10 investment platforms at Sixth Street, each one of the platforms, so think about our growth business.

If we didn't have Tal, we'd probably raise an $8 billion fund because we want to be able to do the larger deals.

But because we have Tal, we want to keep the fund sizes to the level of the opportunity.

But we also want to be able to do the largest deals in the market.

I mean, we want to be able to do the billion, two billion.

We're one of the few handful of firms in the world that can consistently write billion dollar plus checks across asset classes.

But architecturally, we keep our investment platforms funds at modest sizes, matched to whatever the opportunity is over whatever the investment price in that fund.

And then we have this vehicle called TAL on top, which is effectively, in our words, was when we first raised it, the synthetic Goldman Sachs balance sheet, which could do anything.

obviously with the same principles that we've had for the last 25 plus years, we started investing at Goldman.

That gives us the ability in a growth deal.

Let's say that the next Spotify deal comes and let's say it's a $2 billion deal.

Well, if we only have a $4 billion growth fund or $3 billion growth fund, there's no way we're going to be able to do that in the growth fund.

But by having a $30 billion fund over the top,

across the entire firm, we have the ability to keep the fund sizes small, but at the same time, speak to the larger deals.

And then also anything that doesn't fit with any of our investment platforms, we have the flexibility to do that.

Tal is flexible from asset classes.

So it's got everything in there, real estate, infrastructure, private credit, growth, mostly private, but has the ability to public.