Private equity firm TPG and its $33bn credit-investing arm are in talks to part ways, with each going it alone in the increasingly competitive world of private investing.

TPG Sixth Street Partners, which was co-founded in 2009 by Goldman Sachs partner Alan Waxman, would take back most of TPG’s roughly one-third stake, people familiar with the matter said. The split would also dissolve certain agreements that had kept the two sides mostly confined to their core businesses of credit for TSSP and private equity for TPG.