TPG Achieves First Closure of Over $3 Billion New Asian Fund

TPG Achieves First Closure of Over $3 Billion New Asian Fund

A screen announces the listing of private equity firm TPG during its IPO at the Nasdaq Market in Times Square, New York, USA, January 13, 2022. REUTERS/Brendan McDermid

Register now and get FREE unlimited access to Reuters.com

HONG KONG/SINGAPORE, Sep 20 (Reuters) – US private equity firm TPG Inc. (TPG.O) is set to reach the first close of its new Asia-focused fund of more than $3 billion, two people with direct knowledge of the matter told Reuters.

TPG began raising funds for its eighth private equity fund in the region in January to raise $6 billion, the company said during its March earnings call. If successful, the fund will become the largest fund in Asia to date.

The Fort Worth, Texas-based firm is expected to announce its first closure in November, one of the two sources and a third person with knowledge of the matter said.

Register now and get FREE unlimited access to Reuters.com

Private equity funds typically start investing after they first close, when they have received initial commitments from investors.

TPG declined to comment. The sources declined to be named as they are not authorized to speak to the media.

TPG is among the many global and regional private equity firms raising new funds for the region this year.

Last week, Hong Kong-based Baring Private Equity Asia announced the closing of the eighth and largest pan-Asian fund with $11.2 billion in capital. read more

American rival TPG Carlyle Group (KG.O) plans to raise $8.5 billion in a new Asian fund, according to separate people familiar with the situation. Carlisle declined to comment.

The TPG fund’s first close comes amid a challenging global macroeconomic and geopolitical environment that has caused markets to sell off sharply and funding costs to rise.

According to data provider Preqin, funds in Asia are sitting on $521 billion of unspent cash, or “dry powder.”

In the region, the total value of private equity-backed deals in 2022 through September 15 was $121.5 billion, according to Refinitiv data, down 41% from a year earlier.

The slowdown is more significant in China, with total transaction values ​​down 72% from 2021 as coronavirus measures in many parts of the country hurt the economy and prevented potential transactions from taking place.

According to a third source, about 20% of the capital of the new Asian TPG fund will be directed to investments in China, like the last two funds.

TPG declined to comment on distribution to specific markets.

According to its website, since its founding in 1994, TPG Asia has invested more than $13 billion in its core regions and industries. He last raised a $4.6 billion Asian fund in February 2019.

Its Asian portfolio includes Chinese financial services firm Du Xiaoman, Australian entertainment business Funlab and Hong Kong telecom operator HKBN, the website said.

Register now and get FREE unlimited access to Reuters.com

Reporting by Kane Wu in Hong Kong and Anshuman Dagi in Singapore; Yantoultra Ngui Supplemental Report in Singapore; Edited by Louise Havens, Bradley Perrett and Muralikumara Anantaraman.

Our standards: Thomson Reuters Trust Principles.

.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Previous Post
Biden to comment Tuesday on election transparency bill
Blog

Biden to comment Tuesday on election transparency bill

Next Post
Home Healthcare Market Revenue, Key Players, Consumer Trends, Analysis and Forecast to 2027 – IndustryARC – World News Report
Blog

Home Healthcare Market Revenue, Key Players, Consumer Trends, Analysis and Forecast to 2027 – IndustryARC – World News Report

Leave a Reply

Your email address will not be published. Required fields are marked *