TPG seeks $4.5 bln for new Asian buyout fund

  • Previous fund closed on $3.3 bln in 2014
  • Firm has invested $8.1 bln in Asia since 1994
  • TPG Asia led by Timothy Dattels

TPG is marketing its latest Asian buyout fund with a $4.5 billion target, according to New Mexico State Investment Council spokesman Charles Wollmann. The State Investment Council committed $100 million to the fund at its Jan. 10 meeting.

The firm closed its previous Asia-focused fund on $3.3 billion in 2014.

TPG’s Asian buyout platform has invested roughly $8.1 billion across 69 investments since 1994 in Asia, a fund presentation on New Mexico’s website shows. The platform has realized $12.4 billion since inception.

New Mexico’s $100 million commitment to Fund VI was netting a 0.96 multiple and negative 3.5 percent IRR as of Dec. 31, 2015, according to state documents. TPG Asia V, a 2007 vintage fund, was netting a 5.5 percent internal rate of return and 1.3x as of June 30, the California Public Employees’ Retirement System website says.

TPG Capital Asia is led by Managing Partner Timothy Dattels out of the firm’s Hong Kong office.

The firm declined to comment.

New Mexico’s commitment to TPG Asia VII, its first of 2017, remains subject to final negotiations. The $20.7 billion sovereign wealth fund plans to commit $550 million to $650 million in 2017, in line with the $550 million it committed to the asset class last year.

New Mexico State Investment Council held $1.6 billion of assets in PE as of Nov. 30, state documents. The sovereign wealth fund had a 7.9 percent allocation to the asset class, excluding assets acquired through its in-state investments program.

The portfolio was netting an 8.54 percent return on a 10-year basis as of Nov. 30.

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Apollo Global Management Chairman and CEO Leon Black (left), the founding partner of TPG Capital, David Bonderman, and Providence Equity Partners Founder and CEO Jonathan Nelson (right) take part in a panel discussion titled “New Directions in Private Equity”  at the Milken Institute Global Conference in Beverly Hills, California, on April 30, 2013. Photo courtesy Reuters/David McNew