TPG raises close to $14b for buyout, healthcare funds

TPG co-founder Jim Coulter. Photographer: Andrew Harrer/Bloomberg

Private equity firm TPG has raised almost $14 billion for its eighth flagship buyout fund and a supplementary health-care pool as investors pour money into the industry.

The firm’s latest flagship buyout fund, TPG Partners VIII, brought in about $11.2 billion, according to regulatory filings, and is fully subscribed. A health-care fund, TPG Healthcare Partners, raised another $2.6 billion, a filing showed. That pool will invest alongside the main fund in health-care deals.

The latest fundraising surpasses the $10.5 billion amassed for its seventh main pool in May 2016. Luke Barrett, a spokesman for TPG, whose main offices are in San Francisco and Fort Worth, Texas, declined to comment.

TPG and peers are benefiting from a robust fundraising market as investors continue to express confidence in the asset class. Private equity firms raised about $224 billion through the first half of this year, according to Preqin data.

Private equity health-care fundraising reached $122 billion in the first half of 2019, the best start to a year since at least 2013, the data show. Meanwhile, private equity health-care deals are down as the managed-care sector suffered its worst-first half performance in nearly a decade. Investor concerns about Medicare-for-all proposals for universal health coverage also continue to weigh on the sector.

The firm, co-founded by Jim Coulter, manages more than $108 billion across various strategies, including buyouts, growth, equity, credit, hedge funds and real estate.

The Wall Street Journal earlier reported on the fundraising.