Big TPG secondary process closes with Lexington, Ex-Fortress exec launches new pool under hedge fund platform
Happy Tuesday!
This is Chris, on the Wire this morning for Luisa, who is in Texas for our PartnerConnect SouthWest conference.
Big deal: One of the big GP-led secondaries deals we’ve been tracking officially closed. Lexington Partners said yesterday it led the deal that involved TPG Asia V and VI, valued at about $1 billion. Lexington said it led the investor group on the deal.
Buyouts reported over the summer that TPG worked with Lazard on the deal that involved Fund V, which closed on $4.25 billion in 2008 and $3.3 billion for Fund VI in 2014. TPG allowed LPs in Fund V to reduce commitments to the pool by up to 10 percent, or $420 million total, Reuters previously reported.
TPG enabled existing investors in the funds to sell out of their interests in the tender offer process. Sources previously told Buyouts the process also included a shot of fresh capital into TPG Asia Fund VII. That aspect of the deal was not mentioned in Lexington’s announcement this week.
The TPG deal comes after Providence Equity earlier this year ran a tender offer process on its Fund VII. That deal also included a staple of fresh capital into the firm’s eighth fund, targeting $5 billion with a $6 billion cap.
These two deals are examples of high-profile managers delivering liquidity to investors in older funds, which sources say will continue as the secondary market becomes more of a routine tool for LPs and GPs. What do you think? Which interesting secondary processes have you seen in the market? Hit me up at cwitkowsky@buyoutsinsider.com.
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