TPG Growth launches impact fund with Bono

The growth and mid-market buyout arm of TPG has partnered with U2 singer Bono and 11 other investors to focus on seven sectors for impact investing for ‘The Rise Fund’.

 

TPG Growth has launched an impact investing vehicle called The Rise Fund that will co-invest alongside impact-focused venture capital firm Elevar Equity, which focuses on financial services for low-income communities.

Bill McGlashan, the founder and managing partner of TPG's $8 billion growth and mid-market arm, which launched in 2004, co-founded Rise alongside rock band U2 lead singer Bono and Jeff Skoll, a philanthropist who had been the first president of online auction house eBay, according to a TPG statement on Monday.

According to Rise's website , there are 13 collaborators in total, including McGlashan, Bono and Jeff Skoll, and Virgin Group founder Richard Branson, Sudanese-British telecom entrepreneur Mo Ibrahim and DreamWorks Animation chair Mellody Hobson.

Rise will focus on companies intentionally producing positive social, environmental or economic impact, and will be managed by a board consisting of philanthropists, activists and business professionals. According to the statement, it will focus on seven sectors: healthcare, education, energy, food and agriculture, financial services, info tech and industrials and infrastructure.

According to reports? , Rise is targeting $2 billion, and is expected to close in the first half of 2017.

A source familiar with the matter told Private Equity International Rise hasn't made any investments yet.

As part of the Rise launch, Elevar co-founder Maya Chorengel will become a member of TPG Growth to help lead Rise, and TPG Growth advisor Michael Stone will be Rise's chief investment officer, according to the statement.

TPG Growth is also partnering with Boston-based nonprofit philanthropy advisor The Bridgespan Group to build systems for assessing the positive impact of the fund's investments, the statement said.

“An increasing number of experienced entrepreneurs and operators around the world are building businesses that practically tackle these serious social challenges with innovative for-profit companies,” McGlashan said in the statement. “That's why we're building The Rise Fund now.”

TPG, which has $75 billion in assets under management, has been expanding into new areas this year. Last month, TPG Specialty Lending Europe closed its first European direct lending platform, collecting €1.4 billion, as reported by PEI .

Elevar has offices in Bangalore, Bogotá and Seattle and has deployed more than $8 billion in debt and equity to back 26 companies to date, according to its website . It manages $168 million in assets, according to PEI data.

Rise, Bridgespan and Elevar were not available to comment.

TPG declined to comment.