US private equity firm TPG eyes $4b for next growth fund

TPG Growth, the growth equity and middle-market buyout platform of global investment firm TPG, has launched its $4 billion fifth fund.

The development was first reported by the Wall Street Journal on Monday.

The fund corpus was revealed in a New Mexico Educational Retirement Board memo to its investment committee, which is considering a $60 million commitment to TPG Growth Fund V.

The fund was said to continue its predecessors’ strategy of backing business in a variety of sectors including healthcare, consumer, media, technology and business services.

Fund IV was closed in 2017 at $3.7 billion.

New Mexico ERB first established its relationship with TPG through a $75 million investment in TPG Growth II in 2012, followed by $100 million each in its two successor funds, as well as a $25 million financing for TPG’s Rise Fund I.

Performance of these vehicles is “currently 2nd quartile,” the pension fund said. “TPG Growth Fund IV and Rise Fund I are early in their life cycle and currently in their J-curve period.”

Meanwhile, TPG Growth Fund II and III reported 16.27 per cent IRR/1.99x TVPI and 17.33 per cent IRR/1.37x TVPI, respectively.

TPG Growth’s latest fund has secured a $400 million commitment from the Washington State Investment Board (WSIB), according to various media reports.

WSIB, which had a $25.2 billion private equity portfolio by the end of March 2020, last year committed $250 million to TPG’s impact fund, Rise Fund II, after having invested in the inaugural vehicle.

WSIB also invested in TPG’s credit platform, Six Street Partners, which has recently become an unaffiliated entity.

TPG Growth was founded in 2007 to specialise in growth equity and middle-market buyout opportunities across the US, Asia and other select regions.

The platform manages about $12.5 billion in assets. Its Asia portfolio includes AGS India, BookMyShow, FPT Corporation, Dodla Dairy, The Ivy Group and NT Pharma, among others.

Meanwhile, TPG also runs its TPG Capital Asia strategy with $9 billion in assets. TPG Capital Asia has backed companies such as BFI Finance, Healthscope, Mobike, PropertyGuru and Vietnam Australia International School.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.