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TA seeks $4 bln for 12th PE fund

TA Associates has finally launched the long-awaited fundraising of its twelfth private equity fund.

Boston-based TA is seeking $4 billion for the pool, two LPs and a placement agent said. The fund is targeting the same amount as TA’s eleventh fund, which closed on $4 billion in 2009.

TA Fund XI is generating a 17.07 percent IRR since inception as of March 31, performance data from California State Teachers’ Retirement System said.

Bloomberg News, which first reported the TA fundraising, said the firm is charging an average annual management fee of about 1.7 percent and will take 20 percent of the profits.

TA is also in the market with a new subordinated debt fund, an LP said. It’s unclear how much TA is seeking. The firm’s third subordinated debt fund, a 2009 vintage, raised $520 million, press reports said. TA Subordinated Debt Fund III L.P. is producing a 13.13 percent IRR since inception, CalSTRS said.

The growth private equity firm has been looking to exit investments. TA put TwinMed, a medical supply distributor to nursing homes and alternate site markets, up for sale last year. TA is also selling its stake in DNCA Finance, a French asset manager. And, in November, TA sold its holding in Dealer Tire, a distributor of replacement tires and parts for automotive OEMs, to Lindsay Goldberg.

The PE firm typically invests $50 million to $500 million equity per deal. TA focuses on sectors such as technology, financial services, business services, healthcare and consumer businesses.

Executives for TA declined comment.

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