TA seeks $4 bln for 12th PE fund

Boston-based TA is seeking $4 billion for the pool, two LPs and a placement agent said. The fund is targeting the same amount as its 11th fund, which closed on $4 billion in 2009.

TA Fund XI has generated a 17.07 percent IRR since inception as of March 31, according to California State Teachers’ Retirement System.

Bloomberg News, which first reported the TA fundraising, said the firm is charging an average annual management fee of about 1.7 percent and will take 20 percent of the profits.

TA is also in the market with a new subordinated debt fund, an LP said. It’s unclear how much TA is seeking for that vehicle. The firm’s third subordinated debt fund, a 2009 vintage, raised $520 million, press reports said. TA Subordinated Debt Fund III LP has produced a 13.13 percent IRR since inception, CalSTRS said.

The growth private equity firm has been looking to exit investments. TA put medical supply distributor TwinMed up for sale last year. It is also selling its stake in DNCA Finance, a French asset manager.

Last November, TA sold its holding in tire and auto parts distributor Dealer Tire to Lindsay Goldberg.

The PE firm typically invests $50 million to $500 million equity per deal. TA focuses on sectors such as technology, financial services, business services, healthcare and consumer businesses.

Executives for TA declined to comment.