TPG Credit Nears $1B Limit For Fund II – CORRECTED

Firm: TPG Credit
Fund: TPG Credit Strategies Fund II LP
Limit: $1 billion
Amount Raised: $821.7 million
Placement Agent: Denning and Co. LLC

The firm said it has secured $821.7 million from 64 investors for TPG Credit Strategies Fund II LP, according to the filing. The Thomson One private equity database identified the fund as a “turnaround/distressed debt” investment vehicle.

Known LP investors include the Arkansas Teacher Retirement System and the California State Teachers’ Retirement System, according to Thomson One. The predecessor TPG Credit Strategies Fund LP raised $464.5 million in 2007 but fell short of its $500 million target, according to Thomson One. That fund has earned a 1.3x investment multiple and a 5.6 percent IRR, according to investor the California Public Employees’ Retirement System.

Founded in August 2005 by Rory O’Neill, TPG Credit Strategies manages $1.8 billion of investment capital through five funds, focusing on special situation investing, according to its Web site. TPG Credit Strategies has offices in Minneapolis and London. The firm is associated with TPG Capital, but with separate management and controls.

Some of tpg Credit’s strategies can be quite specialized. In February 2011, the firm announced the close of a second fund focused exclusively on credit opportunities in the aviation industry.

A spokesman for TPG declined to comment.

Denning and Co. LLC is acting as placement agent on the new fund, according to the filing.

CORRECTION: A version of this story posted on Sept. 17 misidentified TPG Capital, rather than TPG Credit, as the sponsor of this fund. A person familiar with the fundraising also said the $1 billion “total offering amount” as identified in the federal filing was the fund’s cap, not its target, as originally reported.