New York commits $300m to TPG

The state’s $154.5bn Common Retirement Fund, the US' third largest public pension, has joined a growing list of heavy-hitting LPs lining up for a fund targeting as much as $20bn.

The New York State Common Retirement Fund has approved a $300 million (€470 million) commitment to TPG Partners VI, the private equity firm’s sixth global buyout fund.

The public pension noted in its monthly investment report that no placement agent was used and that it has an existing relationship with the firm.

Targeting an estimated $18 billion to $20 billion, TPG VI has attracted commitments from many large, influential institutional investors.

The California Public Employees’ Retirement System committed nearly $1 billion to the fund; the Pennsylvania State Employees’ Retirement System earmarked up to $400 million; and China’s State Administration of Foreign Exchange has reportedly committed $2.5 billion.

Managed by firm co-founders David Bonderman and James Coulter, TPG VI will look to invest $250 million to $1 billion of equity in companies with market values exceeding $300 million, according to documents on the Pennsylvania pension’s website

The pension’s dossier on the fund notes that TPG expects the fund’s transaction types to vary from traditional buyouts given current market conditions. It “expects an increase in stressed and distressed seller situations, corporate restructurings and reogranisations, carve-out transactions and structured equity refinancings”.