China Life to buy $250m TPG stake - report

According to the Wall Street Journal, the size of the stake is not known but some reports put the insurer's share at around 2-5%, valuing the GP between $5 billion and $12.5 billion.

News of the possible deal comes months after the China Insurance Regulatory Commission (CIRC) approved an application by China Life to use proprietary funds for overseas investment. This is the first transaction of its kind since China Investment Corp. (CIC) paid $3 billion for 10% stake in Blackstone in 2007.

This is not the first time TPG has sold a stake in its business to an Asian investor and it is one of the firm's latest efforts to raise outside capital in lieu of an IPO. In 2011, the GP reportedly sold a 4.5% stake in itself to sovereign wealth funds the Kuwait Investment Authority and the Government of Singapore Investment Corporation (GIC). The capital raised was said to be for TPG's expansion both geographically - to emerging markets - and through its business offerings.

The transaction also comes at a time when TPG is contemplating the launch of another $10 billion global buyout fund. It's last global fund was TPG Partners VI, a $19.8 billion vehicle which launched in 2007 and reached a final close a year later.

 

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• Topics
• Greater China
• LPs
• GPs
• Buyout
• TPG Capital
• LPs
• GPs
• China Life
• CIRC