I’ve heard that TPG is starting a “small buyout fund” or a mid-market fund. We’re not investors, but I would think LPs would be troubled unless they are adding some kind of new team under the TPG brand (which would be a separate issue, and something the Draper folks might have an opinion on). I remember an investment bank doing something similar a few years ago.

Why not include these deals in the main fund? Obviously their success or failure would be swamped by the large deals. But then that’s kind of the point, isn’t it? After extolling the virtues of moving up-market for years, dipping back down would present some challenges, in communication and alignments if nothing else.

If there are partners investing in the small and mega varieties, I wonder how they will split their capital?

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