TPG hits first close of new Asia fund with over $3 billion

© Reuters. A screen announcing the listing of private equity firm TPG, during an IPO at the Nasdaq Market site in Times Square in New York City, U.S., January 13, 2022. REUTERS / Brendan McDermid

By Kane Wu and Anshuman Daga

HONG KONG/SINGAPORE (Reuters) – U.S. private equity firm TPG Inc is set to close the first of its new Asia-focused fund with more than $3 billion, two people with direct knowledge of the matter. this told Reuters.

TPG began fundraising for its eighth private equity fund for the region in January, targeting $6 billion, the company said on its March earnings call. If successful, this fund will be the largest fund in Asia to date.

The Fort Worth, Texas-based company is expected to announce its first closure in November, one of two sources and a third person with knowledge of the matter said.

Private equity funds typically start investing after their first close, when they’ve received an initial round of commitment from investors.

All sources declined to be identified because they were not authorized to speak to the media. TPG declined to comment.

TPG is among a number of global and regional private equity firms that are raising new capital for the region this year.

Last week, Hong Kong-based Baring Private Equity Asia announced it closed the eighth and largest fund in Asia at $11.2 billion.

TPG’s rival in the US Carlyle Group (NASDAQ:) aims to raise $8.5 billion in a new Asian fund, according to others familiar with the situation. Carlyle declined to comment.

The TPG fund’s first closure will come amid a challenging global macroeconomic and geopolitical environment that has triggered a sharp sell-off in the market and increased financing costs.

In Asia, the total value of private equity-backed deals in 2022 as of September 15 was $121.5 billion, down 41% from a year earlier, according to data from the Asia-Pacific Economic Cooperation. Refinitiv.

The slowdown is more significant in China, with total transaction value down 72% in 2021, as coronavirus control measures in many parts of the country hurt the economy and halted potential deals. possibility to take place.

According to a third source, TPG’s new Asia fund will have about 20% of its capital allocated to Chinese investments, like its two previous funds.

TPG declined to comment on the allocation of specific markets.

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