Remember that Twin Brooks business is very sector focused. And so across things like Business Services and Health Care within their portfolio, they saw strong performance. And so I think on the — at least from — at least in terms of our selection criteria, what we do, we obviously have a very a very selective process of how we’re underwriting. We also are underwriting in that business with lower leverage on average, as a result of the lower middle market nature of it, as well as covenant protections across our portfolio, which obviously allows us to get back to the table and work with sponsors to the extent that we need to. But portfolio was very strong overall. And I would say the outlook in terms of the pipeline continues to be on an uptrend, in terms of quality generally.
In Credit Solutions, if you look across our business, I think I said in my comments that our performance was very strong, in excess of 300 basis point premium, over where the indices ended up. I think Jack alluded to the fact that there was a strong rally in Credit spreads at the end of the year. That obviously had a significant impact on the portfolio. And any — and generally, what we’ve done is where we see a change in valuation like that and return to historical tight spreads, we’ve been generally net sellers of the public credit opportunity, as a result of that. So we’ve been — we’ve been liquidating a number of positions across our Credit Solutions book. And we’ve essentially pivoted our focus from kind of public opportunities because of the tightness of the market, to really more private opportunities, more bespoke private opportunities, which are a combination of structuring private credit opportunities as well as rescue finance opportunities.
And the opportunity set there in front of us is very, very substantial and very large. If you look at the structure of the market. There’s over $1 trillion of single B-rated or CCC rated capital structures that are essentially coming due over the course of the next several years. If you look at the market right now, about almost half of the leveraged loan market has less than two times interest coverage, which is — and that’s probably more typically like 20% of the market, historically has less than two times interest coverage. So with those — with that structural dynamic in force in the market right now, it’s going to create a lot of very interesting private opportunities for us to execute on. And there, we’re able to use we’re able to use our sector knowledge and our industry knowledge, across both our Credit business as well as our Private Equity business, in order to underwrite those credits and value those companies.
So we feel like that the dynamics in terms of the way that’s setting up is very positive for us. And then lastly, on the Structured Credit side, the biggest theme here is, what’s going on with respect to the need for capital. And when you look at the community and regional bank stresses that are going on in the market and continuing to go on in the market, we think we’re very early in terms of that dynamic playing out. It’s kind of a second or third inning dynamic with respect to regional bank deleveraging, and we’re going to continue to see that stress drive asset sales and credit risk transfer. And I think overall, we’re also seeing an opportunity to upgrade the quality of the counterparties that we’re working with, looking for that risk transfer.
And on average, I would say non-EBITDA credit has not participated in the rally that corporate credit has participated in. So in terms of relative value, we see a lot of interesting opportunities there. And there have been a number of situations recently, for instance, we just purchased a portfolio, a $600 million portfolio of consumer secured loans from a community bank with really attractive return characteristics to it. So, the portfolio is in great shape and the opportunity set is even better. So that — hopefully, that gives you some guidance on how we’re positioned.
Adam Beatty : Very helpful. Thank you, Jon.
Operator: This concludes the Q&A portion of today’s call. I would now like to turn the call back over to Gary Stein for any additional or closing remarks.
Gary Stein: Great. Thank you. Thank you all for joining us. If you have any follow-up questions, please feel free to circle up with the Investor Relations team. Otherwise, we look forward to talking to you again next quarter.
Jon Winkelried: Thanks, everyone.
Jack Weingart : Thank you.
Operator: This concludes today’s TPG’s fourth quarter and full year 2023 earnings call and webcast. You may now disconnect your line at this time. And have a wonderful day.
