Global buyout giant Texas Pacific Group has closed raising $30 billion in new funds this year. While $19.8 billion would be for its flagship buyout fund, its also earmarking $4 billion for its Asian fund, reports Wall Street Journal. TPG’s close of its fund comes at a time when when other global PE firms have delayed closing of their global funds.
The prevailing economic sceanario seems to be interesting for TPG whose strategy leans towards distressed investments. It is known for its turnaround of Buger King and Continental Airlines. Recently TPG has invested $7 billion into Seattle-based Washington Mutual, which has been hit hard by the credit crisis. Washington Mutual has also had a change in management with removal of its longtime CEO Kerry Killinger.
Quite a few funds have delayed their closing dates in recent times as fund raising enviornment is becoming tough. Blackstone Group had delayed first close on its fund to June, which is targeting $20 billion, and it seems to have gotten further delayed. Carlyle has delayed final closure on its $15 billion fund until the end of the year from May 30. Madison Dearborn Partners, which is seeking $10 billion, also delayed its first close.
TPG does not have a high exposure in India. In 2006, it had roped in former Intel capital chief Varun Kapur to head the Indian VC arm, TPG Ventures. Its investments are focused on focused on expansion growth and investments of less than $75 million in TMT and finance verticals. Also they had hired ex-Wipro vice-chairman and currently TPG partner Vivek Paul.