TPG Capital’s second growth fund, which is targeting $2 billion for mid-market buyouts, received two commitments totaling $80 million Tuesday. The New Mexico State Investment Council and the Los Angeles City Employees’ Retirement System both invested in TPG Growth II, committing $50 million and $30 million respectively.
The fund 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 OIC invested $75 million in the fund last month.
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. STAR was generating a 10.6 percent internal rate of return and a net total value multiple of 1.16x as of 31 December, 2010, according to Oregon pension documents.
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 has not engaged a placement agent.
In addition to New Mexico and Oregon, the Washington State Investment Board and the Louisiana Teachers Retirement of System have also committed to the fund.
TPG was founded in 1992 and currently controls $48 billion in assets under management, according to its website.