TPG Growth invests in software company

TPG’s growth investment platform has purchased software and services company MarketTools. TPG will transfer three of MarketTools’ business lines to web-based survey company SurveyMonkey for a minority stake in the business.

TPG Growth, the firm’s mid-market growth investment platform, has acquired MarketTools, a software and services provider for market research. The transaction is expected to close in January 2012.

Under the terms of the deal, TPG will transfer three business lines of MarketTools to web-based survey company SurveyMonkey in exchange for a minority stake in SurveyMonkey. The three businesses to be exchanged are Zoomerang, an online survey application; ZoomPanel, an online sample provider and TrueSample, a data quality assurance technology.

William McGlashan, TPG Growth managing partner, called MarketTools and SurveyMonkey “market-leading innovators in online market research” in a statement. TPG has plans to help SurveyMonkey build “new and enhanced services”, McGlashan added.

TPG Growth was unavailable for comment at press time.

In August, TPG’s second growth fund, which is targeting $2 billion for mid-market buyouts, received $80 million in commitments from the New Mexico State Investment Council, which committed $30 million, and the Los Angeles City Employees’ Retirement System, which committed $50 million. The fund also received $75 million from the Oregon Investment Council in July and counts additional limited partners in the Teachers’ Retirement System of Louisiana and the Washington State Investment Board.

TPG Growth II will split its investments between US and international opportunities, with an emphasis on China and Southeast Asia, according to documents obtained from the Oregon Investment Council. The fund is expected to complete 25 to 30 transactions of less than $100 million over the course of its six-year commitment period, focusing on late-stage venture capital opportunities, minority growth investments, small buyouts, corporate partnerships and start-ups. TPG will make a 1.5 percent capital commitment to Fund II upon its final close.

The firm’s previous small-cap growth focused fund, called Small Transactions, Allied-Resources fund, closed in 2007. Like STAR, TPG Growth II will target smaller, high-growth investments the firm had focused on its earlier private equity funds.

TPG Growth has $3 billion under management and is focused on investments in technology, life sciences, biotechnology, renewable energy and retail companies. The firm is backed by the resources of TPG with $48 billion of assets under management.