TPG to raise up to $5bn for Asia fund

The global firm is plotting its sixth Asian fund, which could be the largest fund raised for the region since the financial crisis.

Global private equity firm TPG Capital is launching an Asian fund with a target of between $4 billion to $5 billion, a source confirmed to PE Asia.

TPG declined to comment.

The fund would mark the largest regional fund raised in Asia since the global financial crisis in 2008. The spot at the top of the podium is currently occupied by Baring Private Equity Asia, which closed its fifth fund on $2.46 billion earlier this year. Narrowing the gap is PAG, which held a first close on $1.7 billion for its PAG Asia I in July and is expected to reach a final close on $2.5 billion in upcoming months.

TPG is currently in the market for several funds. In addition to the two China funds the firm launched last year, TPG is targeting $2 billion for a second growth fund, which will split its investments between the US and Asia, and $1.5 billion for TPG Opportunities Partners II, which focuses on investments in non-performing loans, distressed-for-control and special situations on a global basis.

The global firm is currently investing in Asia from its $19.8 billion global fund TPG Partners VI and $4.25 billion TPG Asia Partners V, which attracted commitments from LPs including California Public Employees’ Retirement System (CalPERS), California State Teachers’ Retirement System (CalSTRS), Pennsylvania State Employees’ Retirement System and Canada Pension Plan Investment Board (CPPIB).

Both funds closed earlier in 2008. But in light of the global financial crisis, TPG told its LPs that it would allow them to reduce their commitments by as much as 10 percent, or up to $2 billion for the global fund and $420 million for the Asia fund.