Private Equity News & Analysis

TPG has biggest deals pipeline

US buyout firm TPG Capital has the largest number of deals outstanding at the moment, according to data provider Dealogic. A source familiar with the firm’s TXU transaction said the buyout firm was not experiencing problems on the deal.

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Data provider Dealogic has revealed US buyout firm TPG Capital has the largest amount of outstanding M&A buyouts worth $113.4 billion. It counts buyouts that have been announced, but not yet completed.

The buyout firm with Goldman Sachs Capital Partners and Kohlberg Kravis Roberts has had a $48.3 billion offer accepted for Texan energy group TXU, as well as making a $28.7 billion offer for ALLTEL along with Goldman.  

This means TPG may be closing in on Kohlberg Kravis Roberts as the heaviest spender of the year. KKR has made $123 billion worth of deals so far this year, while TPG is currently third with $87 billion invested. Although Dealogic could not immediately provide figures for KKR’s outstanding deals this year.
  
TPG declined to comment.

TPG’s pipeline could be threatened by a shareholder vote on September 7 on the TXU acquisition. TXU’s largest shareholder, money manager Franklin Resources has reportedly said the offer price was too low, according to news agency Reuters. Bankers may be reluctant to fund the deal without significant backing from key shareholders, according to media sources.

But a banker close to the TXU deal, said: “The idea that the credit crunch may affect the TXU deal is total nonsense. People want to move the stock and so they are putting rumours into the market to suggest there are problems between the buyout firm and the underwriters.”