Sixth Street Sees Growth Opportunities in Dysfunctional European Capital Markets

Sixth Street Partners is scaling up in London, taking advantage of dysfunctional debt and equity capital markets across Europe. The firm provides financing for European firms that are still private or pursuing takeovers, and sees opportunities in insurance, infrastructure, and real estate. With a capacity for over 120 people in its new Mayfair office, Sixth Street aims to capitalize on the shrinking European capital markets and deep discounts offered by US buyers.

Sixth Street Partners, a San Francisco-based investment firm, is scaling up its operations in London, capitalizing on the dysfunctional debt and equity capital markets across Europe. The firm, which manages over $115 billion in assets globally, has moved into a new office in Mayfair with a capacity for over 120 people, doubling its current staffing in the UK capital [1].

Executives at Sixth Street believe that the current state of European capital markets presents significant opportunities. Julian Salisbury, partner and co-chief investment officer, noted that the absence of a healthy capital market works in favor of Sixth Street. The firm provides financing for European firms that are still private or pursuing takeovers of already-listed firms. Salisbury pointed out that in fast-moving deals requiring substantial capital, a handful of people could look at it in Europe compared to five handfuls in the US [1].

The firm's focus areas include insurance, infrastructure, and real estate. Commercial real estate is expected to come under increasing stress as those who purchased assets using short-term financing about five years ago are now having to refinance at higher interest rates. In the UK, logistics and housing are among the firm’s recent investments in real estate [1].

Sixth Street is also exploring defense as a potential new investment category, especially given Europe's increased spending pledges. However, the firm has not yet taken a view on making an investment in this area [1].

In parallel, the secondaries market, which involves buying and selling pre-existing investments in private equity, credit, venture capital, real estate, infrastructure, and related areas, is gaining traction. Coller Capital, a prominent player in this segment, argues that secondaries offer a useful way to spread risk and enter the wider private market. Coller Capital has been active in the secondaries market, recently closing its Coller Credit Opportunities II fund, which raised $6.8 billion [2].

Secondaries provide liquidity solutions for investors needing to raise money or switch into different investments. The market is expected to grow significantly, with transaction volume potentially reaching $500 billion by 2030. Secondaries also tend to show lower volatility of return and are therefore more predictable [2].

The crypto market is also witnessing significant developments. Robinhood has introduced its tokenized equity platform in the European Union, attracting private firms seeking retail access. OpenSea acquired Rally Wallet to enhance its mobile token trading operations, while Metaplanet plans to utilize its Bitcoin reserves to acquire a digital bank [3].

These developments highlight the transformative potential of blockchain technology in equity trading and capital investment strategy.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-11/sixth-street-sees-wins-in-europe-s-dysfunctional-capital-markets
[2] https://www.familywealthreport.com/article.php/Coller-Capital-Closes-Another-Secondaries-Fund%2C-Says-Sector-Important-Diversifier
[3] https://www.analyticsinsight.net/cryptocurrency-analytics-insight/crypto-news-today-robinhood-draws-private-equity-opensea-buys-rally-metaplanet-eyes-digital-bank