General Atlantic, Tripp Smith Look To Spend $5B Fund On Coronavirus-Stricken Firms

To provide firms impacted by the coronavirus pandemic with financing, General Atlantic has joined forces with Tripp Smith. The private equity firm is creating a joint venture with Iron Park Capital Partners LP, Smith’s credit-focused company, The Wall Street Journal reported, citing unnamed sources.

The venture, which is known as Atlantic Park, will provide structured equity and debt financing to firms that were healthy in the past but are now encountering difficulty due to the health crisis. General Atlantic and Iron Park have already started discussions with possible investors, and are seeking to bring in over $5 billion to spend over the two years to come.

The initiative will mostly target global firms with private equity funding in verticals that are within General Atlantic’s focus areas.

General Atlantic has $35 billion in assets and locations around the world. The company, which was started in 1980, has become famous by investing in successful private tech firms while operating under Chief Executive Bill Ford.

The $1 billion debt and equity investment that Airbnb Inc. accepted from Sixth Street Partners and Silver Lake is said to serve as a guide to the types of deals the new fund will pursue. The funds, according to past reports, would be applied toward new features as the company seeks to capitalize on changes caused by the coronavirus pandemic.

The money was to include $5 million toward the Airbnb Superhost Relief Fund, which will assist hosts aiming to make ends meet for mortgages and rent on their own residences, as well as experience hosts seeking to make money during the health crisis. Co-Founder, CEO and Head of Community Brian Chesky said in a release that the “desire to connect and travel is an enduring human truth that’s only been reinforced during our time apart” as the virus forces everyone to self-isolate.