TA closes latest global fund at $16.5b hard cap
TA Associates, a global growth-oriented investor with an Asia portfolio that is relatively heavy on India and Australia, has closed its 15th fund at the hard cap of USD 16.5bn after seven months in the market.
The vehicle is nearly one-third larger than its predecessor, which closed on USD 12.5bn in 2021. This step-up in size appears to run contrary to the challenging conditions for fundraising globally. About USD 1.3trn was committed to private capital strategies in 2022, down 10% year-on-year, according to Bain & Company. Buyout and growth equity saw steeper drops of 16% and 17%, respectively.
However, TA’s success does correspond to Bain’s suggestion that demand for larger funds launched by managers with established track records is unlikely to wane amid market uncertainty. The number of buyout funds closed in 2022 fell 43% year-on-year as capital concentrated on mega funds. Funds of USD 5bn and above attracted 57% of the buyout total, up from 43% in 2021.
TA said it received commitments from the likes of public and private pension funds, sovereign wealth funds, asset managers, endowments, foundations, family offices, and insurance companies.
The private equity firm will remain focused on opportunities in technology, healthcare, financial services, consumer, and business services. A total of USD 6.5bn was deployed across these sectors in 2022, including 20 new investments and nine bolt-on acquisitions.
In Asia Pacific, TA backed Faria Education Group, a Hong Kong-headquartered provider of school operating software to more than 5,500 teaching institutions in 170 countries. It covers the entire student and school lifecycle, from admissions and enrolment to course delivery, assessment and reporting, and payments. Several other portfolio additions are based outside of Asia but have interests here.
Meanwhile, an agreed bumper exit fell apart towards the end of 2022 when PayU’s USD 4.7bn acquisition of fellow payments app BillDesk was abandoned. Had the deal proceeded, it would have generated liquidity events for the likes of General Atlantic and Temasek Holdings as well as TA.
Established in 1968, TA has invested in more than 560 companies to date and there are currently around 120 in the portfolio. The firm has over 150 investment professionals globally, working out of offices in Boston, Menlo Park, Austin, London, Mumbai, and Hong Kong.
“Amid a period of macroeconomic uncertainty, our investors’ continued trust and confidence in our investment strategy is particularly energizing. We embrace the opportunity to further our strategy, partnering with forward-thinking founders and management teams to build lasting value in exceptional businesses,” said Ajit Nedungadi, CEO of TA, in a statement.
Goodwin Proctor served as legal counsel for the latest fundraise.
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