TPG approaches first close of $1.5b on Asia fund
TPG is nearing a first close of its latest Asian buyout fund on $1.5 billion, bringing the private equity giant one step closer to its goal of raising at least $4 billion for the region.
Government of Singapore Investment Corp. (GIC) is expected to be the vehicle's largest investor, having already acquired a 4.5% stake in the TPG management company one year ago. The fund is set to be the largest Asia-focused fund raised since the onset of the global economic crisis.
According to the Financial Times, TPG told its LPs on Tuesday that it plans to channel up to 30% of the fund in China. The firm has thus far struggled to make and manage investments in Japan, prompting co-founder David Bonderman to tell attendees of TPG's annual investor meeting in Hong Kong this week that "glaciers move faster than Japanese make decisions".
TPG Capital Partners V fund - the $4 billion regional vehicle through which TPG currently invests in Asia - is now more than 75% deployed.
Last year, Hong Kong-based private equity firm Baring Private Equity Asia closed its fifth fund at $2.46 billion - 60% larger than its previous vehicle that closed at $1.52 billion in February 2008. KKR, meanwhile, is targeting $6 billion for its second Asia buyout fund, and PAG Asia I reached a first close of $1.7 billion last July and is targeting $2.5 billion in total.
Bain Capital launched its second Asia fund last June, with a fundraising target higher than the $1 billion raised for its previous fund, while Carlyle Asia Partners III closed at $2.55 billion in April 2010.
In addition to TPG Capital Partners V, TPG makes Asian investments through its $19.8 billion global fund, and manages two renminbi-denominated funds out of Shanghai and Chongqing, both launched in partnership with local government bodies.
It entered Asia in 1994 via the launch of affiliate Newbridge Capital, and has counted assets such as China Grand Auto, Shriram Transport, Vishal Retail, Avon Japan, Takefuji Bank and Singapore-based United Test and Assembly Center as key portfolio companies.
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