Private equity firm TPG has raised a little less than $14 billion for its flagship global buyout fund and a healthcare investment vehicle, just months after it mobilised capital for a separate Asian fund.
The Texas-based firm raised $11.2 billion for its eighth buyout fund from 235 investors while its affiliate TPG Healthcare Partners received commitments of $2.57 billion from 155 investors, according to filings with the US Securities and Exchange Commission.
TPG had mopped up around $10.6 billion for its seventh global buyout fund in May 2016. In February this year, TPG closed its seventh Asian buyout fund at $4.6 billion. The firm is also looking to raise its second Rise Fund globally to make impact investments.
The Wall Street Journal and Bloomberg reported this development earlier today.
PE firms have seen a surge in capital-raising activity across regions in recent years. TA Associates raised $8.4 billion for its latest global fund in May while Advent International closed its new fund at $17.5 billion last month.
Unlike TA Associates and Advent International, which invest in India out of their global funds, TPG invests in the country mostly out of its Asia buyout fund, the TPG Growth fund and from impact arm The Rise fund. TPG Growth also has a separate platform called Asia Healthcare Holdings, to make healthcare investments in the region.
The two new funds would be TPG’s first formal closing after a senior executive was fired in March because of bribery allegations.
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 invested in UPL Corporation and Sai Life Sciences last year out of its Asian buyout fund.
In India, 2018 was one of TPG’s most active years for exits, a VCCircle analysis showed.
Since then, the PE firm has booked a partial exit out of Asia Healthcare Holdings and is looking to fully exit Shriram Group.