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TPG closes seventh Asia private equity fund at $4.6 bn
Photo Credit: VCCircle

Global alternative assets investment firm TPG said on Monday it has hit the final close of its seventh Asia-focused private equity fund after raising over $4.6 billion, exceeding its target.

“With Asia VII, we will continue to invest in opportunities that reflect our differentiated investment strategy, deep sector expertise, and focus on operational improvement,” Ganen Sarvananthan, co-managing partner for TPG Capital Asia, said in a statement. 

TPG Asia VII has so far committed more than 40% of the capital across 12 companies. These include Indian agrochemicals maker UPL Ltd, Chinese consumer lending company Du Xiaoman and Pathology Asia Holdings, which operates 39 labs across Singapore, Malaysia and Vietnam.

TPG joins a bunch of global PE firms such as Blackstone and Carlyle in raising Asia funds at a time when the region is already flush with private capital.

In December, global private equity firm Bain Capital LLC closed its new Asia fund at $4.65 billion. China's Hillhouse Capital in September raised $10.6 billion in the region’s biggest PE fund. 

In June last year, Blackstone Group LP raised $9.4 billion for two Asia-focussed funds last year while Carlyle scooped up $6.55 billion for its new fund for the region.

Indian impact investor Aavishkaar Venture Management Services Ltd is planning to raise $300 million to invest in Southeast Asian countries.

TPG had established its first Asia fund in 1994, just two years after the US-based firm started operations. It has about 50 investment professionals in Asia, with offices in Beijing, Hong Kong, Mumbai, Seoul, Singapore and Melbourne.

The PE firm has invested $11 billion in 88 transactions across 13 countries. It mainly focuses on the financial services, healthcare, consumer, telecom, media and telecom sectors.

TPG entered India through Newbridge Capital, its Asian arm, in 2002. It made its first investment in India the following year when it backed drugmaker Matrix Laboratories. In 2006, TPG merged Newbridge with itself and began investing in India directly out of its global funds.

The PE firm's India play is dominated by TPG Growth, which makes growth-equity bets or invests in mid-market companies. TPG Growth has backed digital payments firm AGS Transact, eyewear retailer Lenskart, footwear maker Campus and online ticketing company BookMyShow, among others, in India.

It has also set up a healthcare investment platform, called Asia Healthcare Holdings, which has received funding from Singapore state investment firm Temasek Holdings.

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