Report: TPG raises $2.9bn for Asia

The firm is nearing its $3.5bn target after restructuring its Asia team.

Global private equity firm TPG has raised $2.9 billion for its sixth Asia Pacific fund in a third round of fundraising, Bloomberg has reported citing sources close to the matter.

The new commitments take the Texas-based private equity firm closer to its $3.5 billion target, which will reportedly close in the second half of May.

A spokeswoman for TPG in Asia declined to comment.

The latest closing includes a $100 million commitment from the New Mexico State Investment Council, which committed $175 million to TPG in January across two vehicles, one being TPG Asia Fund VI, Private Equity International reported earlier.

“We like the pan-Asia approach. These are very rapidly dynamic changing markets,” a member of New Mexico’s investment team said at the time.

However, despite recent success, TPG’s Asia vehicle, which reduced its target from $4 billion, has struggled to raise its capital while its pan-Asian counterparts have quickly garnered commitments from LPs.

TPG launched the vehicle in early 2012, since seeing rivals Kohlberg Kravis Roberts, MBK Partners and Affinity Equity Partners close $6 billion, $2.7 billion and $3.8 billion funds respectively, ahead of its own.

Industry sources have widely pronounced high turnover at the fund’s senior management level as the reason for its difficulty in the market. TPG lost key China investment professionals Weijian Shan and Mary Ma to PAG and Boyu Capital respectively between 2010 and 2011, significant losses for the firm’s China practice.

Nevertheless, TPG has ploughed on with its Asia activities, sealing a number of deals and exits over recent months, as well as restructuring and strengthening its Asia Pacific team.

Late last year, TPG revealed it would relocate senior partner Tim Dattels from the firm’s San Francisco headquarters to Hong Kong where he would become co-head of Asia following Chinese New Year 2014, which fell on 31 January.

Dattels was fundamental in developing TPG’s relationship with Indonesia’s Bank Tabungan Peninsuan Nasional, which the firm sold in May last year over two tranches to Japanese Sumitomo Mitsui Banking Corporation, the firm told PEI earlier.

The two deals combined, selling a 40 percent interest, were worth $1.52 billion and were expected to hand the firm a 7x return.

In January, TPG further added to its Southeast Asia team, hiring Datuk Ganen Sarvananthan from Malaysia’s sovereign wealth fund Khazanah Nasional Berhad where he was head of investments and executive director. He will be based in Singapore.