Private equity major TPG announced that it has secured close to $8 billion in total commitments for its dedicated Asia private equity and real estate vehicles.
TPG said it has raised approximately $5.3 billion in aggregate capital commitments for TPG Asia VIII, its eighth flagship Asia buyout fund, larger than the predecessor TPG Asia VII, which raised over $4.6 billion in early 2019.
The PE firm also secured more than $2.5 billion in total commitments for its first TPG Angelo Gordon Asian real estate funds – TPG AG Asia Realty Fund V and TPG AG Japan Realty Value Fund.
Asia Realty Fund V, which closed more than 50% higher than its predecessor, seeks real estate investments in Japan, Korea, China, Hong Kong, and Singapore markets.
The Japan Realty Value Fund, its first Japan-focused realty fund, focuses primarily on the acquisition of interests in real estate, including industrial, office, residential, and retail.
“These successful campaigns reflect the strength of our performance and the quality of our platform in Asia,” said Jon Winkelried, CEO of TPG.
Founded in 1992, TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, with $222 billion in assets under management and investment.
The 2022-vintage TPG Asia VIII, for which the firm held a first close at $3.4 billion in November 2022, counts some of America’s biggest pension funds, such as the Teacher Retirement System (TRS) of Texas and Washington State Investment Board (WSIB), among its limited partners (LPs), DealStreetAsia previously reported based on public filings.
Earlier reports said TPG plans to deploy about 10% of the Asia VIII pool to China, down from approximately 25% of invested capital in previous funds.
The San Francisco-headquartered PE firm will allocate more than 80% to Australia, India, and Southeast Asia, up from 70% in the previous funds. The rest will go to South Korea, Bloomberg reported.
The firm has already invested over $2 billion from the new fund. It has not made an investment from the new vehicle in China so far.
It booked a strong start with a net internal rate of return (IRR) of 129% as of December 31, 2023, according to its latest earnings presentation. About 70% of the initial deployment went to India and Australia.
“We continue to see a wealth of compelling investment opportunities across the region, and we are confident that our deeply experienced team and strong, established operating partner network position us well to capitalize on them and drive value for our LPs,” said TPG AG Asia Real Estate head Wilson Leung.