TPG eyes December final close for flagship PE and healthcare funds

TPG is set to wrap up fundraising for its ninth flagship private equity fund and second healthcare fund by the end of the year, CFO Jack Weingart said on the firm’s third-quarter results call Tuesday.

TPG Partners IX together with TPG Healthcare Partners II have a combined target of $18.5 billion. As of the end of September, TPG raised $10.5 billion for TPG IX and $2.4 billion for THP II, per earnings materials.

The firm is seeking $15 billion for its latest PE flagship fund and $3.5 billion for its second healthcare vehicle, Private Equity International understands.

Along with final closes for these funds, the firm also expects the final close for its TPG Asia VIII in the first half of next year, Weingart said. The firm has gathered $4.3 billion for the vehicle as of end-September, according to earnings materials. It is seeking $6 billion, PEI data shows.

Weingart had previously said on the firm’s first-quarter earnings call in May that its flagship’s fundraising targets in aggregate “may not grow as much as we previously expected”.

“While it is still too early to tell what the outcome of each fundraise will be,” he had said then, “we’re currently managing the business assuming that we will raise an aggregate of approximately $23 billion-$24 billion.”

Speaking on the call accompanying earnings, chief executive Jon Winkelried said: “Each of our flagship campaigns remains on track to surpass the commitments of its predecessor, and we continue to have high quality dialogue with clients as we work toward final closes.”

TPG raised $3.4 billion across strategies over the third quarter and $11 billion in the year to September.

The firm is also in market with its sixth growth fund and is eyeing a strong first close, Weingart said on the call. TPG Growth VI launched towards the end of the second quarter and has a $4 billion target, Buyouts reported.

TPG is also experiencing “nice momentum” across its impact funds, Weingart said. It held the final close for Rise Fund III on $2.7 billion over the weekend, marking a 24 percent increase on its $2.2 billion predecessor, Weingart noted. It expects to be in market with its inaugural climate infrastructure fund in the first half of next year.

Assets under management totaled $136.1 billion at quarter-end, a 1 percent increase over the previous quarter. With the completion of the acquisition of credit and real estate manager Angelo Gordon earlier this month, total combined assets reached $212 billion.