TPG targets up to $5b for Asia-focused fund

The vehicle is scheduled to be launched mid-October, sources close to the fund told Reuters, and comes as its TPG Capital Partners V fund - the $4 billion regional vehicle through which TPG currently invests in Asia - is approximately 75% deployed. That fund is among the largest Asia-focused funds ever raised, and is poised to be overshadowed if TPG reaches its $5 billion target.

Earlier this year, Hong Kong-based private equity firm Baring Private Equity Asia achieved the largest fundraise since the beginning of the global financial crisis, closing its fifth fund at $2.46 billion - 60% larger than its previous vehicle that closed at $1.52 billion in February 2008.

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 Chonqing, 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.

Asian bodies also have interest in TPG. In May, government-owned China Development Bank was reportedly seeking permission to purchase a stake in TPG, coming one month after TPG sold a 4.5% stake to the Government of Singapore Investment Group (GIC) and the Kuwait Investment Authority (KIA). TPG and Northstar Pacific, the Indonesian buyout group with which TPG already has strong ties, also agreed to a share swap last month, with TPG taking a 10% stake in Northstar, which will then receive a less than 0.5% interest in the US firm, sources told AVCJ.

James Coulter, founding partner of TPG Capital, will be a headline speaker at the 24th Annual AVCJ Forum 2011, taking place on the 7 - 10 November 2011 at the Grand Hyatt Hong Kong. He will be joined by global private equity heavyweights including Henry Kravis, of KKR; Howard Mark, of Oaktree Capital; David Rubenstein, of The Carlyle Group; Jonathan Nelson, of Providence Equity Partners; and John Connaughton, of Bain Capital. For more information on the 2011 AVCJ Forum visit www.avcjforum.com.

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• Topics
• Fundraising
• GPs
• TPG Capital
• Fundraising
• Baring Private Equity Asia