TPG rakes in close to $14bn in double fundraise

The firm has raised the capital across its eighth flagship fund and an accompanying healthcare sidecar vehicle.

TPG has pulled in almost $14 billion in its latest round of fundraising.

The firm has raised more than $11 billion for TPG VIII – its latest flagship vehicle, which had an $11 billion target – according to a source familiar with the matter. The exact amount raised for the fund is unknown. An SEC filing shows $11.2 billion has been raised since inception.

TPG has also raised more than $2.5 billion for TPG Healthcare Partners, a sidecar that will invest alongside the flagship fund.

It is understood that both vehicles have yet to hold a formal final close, as several LPs are still working through specific legal and regulatory matters.

TPG declined to comment on fundraising.

Investors in TPG VIII include the California Public Employees’ Retirement System ($600 million), California State Teachers’ Retirement System ($200 million), Canada Pension Plan Investment Board ($410 million) and Teacher Retirement System of Texas ($320 million), according to PEI data.

TPG Healthcare Partners received a $90 million commitment from CPPIB, $100 million from Oregon Public Employees’ Retirement System and $25 million from Michigan Department of Treasury, among others, according to PEI data.

TPG VIII is expected to invest in North America and Europe-focused mid- to large-cap companies. The firm is focused on investing in six core industries: healthcare, technology, internet digital media and communications, consumer, industrials and business services and energy.

Its predecessor closed on $10.5 billion in 2015. That fund was delivering a net internal rate of return of 18 percent and a net multiple on invested capital of 1.3x as of 31 December, according to documents prepared for the Minnesota State Investment Board.

The fund has a 10-year term with two optional one-year extensions and a six-year investment period.

TPG recently made a minority investment in diversity-focused VC firm Harlem Capital Partners, its third GP stake acquisition after Asian direct secondaries specialist NewQuest Capital Partners last year and CircleUp, which helps start-ups raise equity. The acquisition was made using capital from TPG’s balance sheet.

In May, the firm signed a definitive agreement to take over management of the Abraaj Group’s Growth Markets Health Fund. The vehicle was renamed The Evercare Health Fund and will be managed by TPG Growth, which also manages TPG’s own impact investment fund, The Rise Fund.