TPG Capital raises $3.3B in Asia buyout fund

Global private equity firm TPG Capital has raised $3.3 billion in its sixth Asia-focused buyout fund, media reports citing top executives said late last week. The new fund is a little over a fifth smaller than the fifth fund raised six years ago.

The PE firm had the fundraising trail for the new Asian fund almost two years ago. It will primarily target investments in healthcare, retail and consumer and financial services sectors.

The new fund will focus on Australia, India, Southeast Asia and China, and it will likely commit half its capital to buyout deals. The other half would be used to buy minority stakes in growth-capital deals, especially in China and India.

Emails sent to Puneet Bhatia, who heads the buyout firm in the country, and TPG Capital’ public relations’ team, for more details did not elicit any response.

The PE firm had reshuffled its senior management in Asia nearly six months ago bringing back partner Tim Dattels to join Ben Gray, as co-head of its business in the region. They replaced Hong Kong-based Stephen Peel, who used to head the PE giant’s business in Asia.

TPG recently hired Ganen Sarvananthan from Malaysian sovereign fund Khazanah to boost its regional team.

TPG is likely to tap opportunities in emerging Asian markets and chase more co-investor deals with its new fund. The firm has been an investor in Asia since 1994.

TPG has already committed or invested $540 million from its new fund while its co-investors have added a further $340 million in its deals.

Recently Manish Chokhani, former top honcho of Axis Capital, was appointed as chairman of TPG Growth India. Earlier, Amol Jain, a top MD of TPG Growth in India, had quit the firm.

Despite sitting on huge amounts of cash, PE firms are raising funds across the globe. Fund managers are sitting on $138 billion of unspent capital, as of last year, according to research firm Bain & Co. Norwest Venture Partners has recently raised $1.2 billion for its Norwest Venture Partners XII fund.

TPG had last year invested in two mid-sized firms—Sutures India and Flexituff. It has been largely focusing on growth capital deals but has done a few buyout style transactions like partnering Shriram Group to buying Vishal Megamart’s business.

Last year it scored a multi-bagger by selling 10 per cent stake in Shriram Transport Finance to Piramal Enterprises.

(Edited by Joby Puthuparampil Johnson)

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